Application Volume Declines Slightly in Latest MBA Survey

July 26, 2006

The Mortgage Bankers Association's (MBA)Weekly Mortgage Applications Survey for the week ending July 21 found that the Market Composite Index, a measure of mortgage loan application volume, was 533.8, a decrease of 1.3 percent on a seasonally adjusted basis from 540.8 one week earlier. On an unadjusted basis, the Index decreased 1.2 percent compared with the previous week but was down 28.2 percent compared with the same week one year earlier. 

The seasonally-adjusted Purchase Index decreased by 2.4 percent to 389.0 from 398.5 the previous week and the Refinance Index increased by 0.6 percent to 1385.2 from 1377.6 one week earlier. The seasonally adjusted Purchase Index ties the three year low that was observed five weeks ago. Other seasonally adjusted index activity includes the Conventional Index, which decreased 1.3 percent to 788 from 798.2 the previous week, and the Government Index, which decreased 1.6 percent to 109.9 from 111.7 the previous week.

The four week moving average for the seasonally-adjusted Market Index is up 0.2 percent to 550.6 from 549.6. The four week moving average remains unchanged at 406.7 for the Purchase Index, while this average is up 0.5 percent to 1396.8 from 1389.5 for the Refinance Index.

The refinance share of mortgage activity increased to 35.6 percent of total applications from 35.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 28.6 percent of total applications from 29.0 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.69 percent from 6.73 percent, with points decreasing to 1.07 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. 

The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.31 percent from 6.38 percent, with points increasing to 1.07 from 1.02 (including the origination fee) for 80 percent LTV loans. 

The average contract interest rate for one-year ARMs decreased to 6.25 percent from 6.28 percent, with points decreasing to 0.83 from 0.85 (including the origination fee) for 80 percent LTV loans.

Source: MBA


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