Mortgage Loan Applications Down in Latest MBA Survey

June 12, 2002

Refinance Index Increases from Previous Week

WASHINGTON, D.C. (June 12) The market composite index of mortgage loan applications-a measure of mortgage loan applications for purchases and refinancings-for the week ending June 7 decreased 5.5 percent to 554.9 on a seasonally adjusted basis from 587.4 the previous week, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. On an unadjusted basis, the application index increased 16.6 percent and was up 0.9 percent compared to the same week a year earlier.

The MBA seasonally adjusted Purchase Index decreased to 359.0 from 414.0 the previous week. The seasonally adjusted Refinance Index increased to 1693.8 from 1596.4 the previous week. Other seasonally adjusted index activity included the Conventional Index, which decreased to 765.2 from 790.8 the previous week, and the Government Index, which decreased to 204.0 from 248.0 the previous week.

Refinancing activity represented 42.3 percent of total applications, increasing from 37.2 percent the previous week. The share of ARM activity increased to 17.5 percent from 16.4 percent the previous week.

The average contract interest rate for30-year fixed rate mortgages was 6.65 percent, decreasing slightly from 6.66 percent the previous week, with points increasing to 1.61 from 1.42 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for15-year fixed rate mortgages was 6.15 percent, increasing from 6.11 the previous week, with points increasing to 1.33 from 1.26 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for1-year ARMs was 4.48 percent, decreasing from 4.55 percent the previous week, with points decreasing slightly to 1.13 from 1.14 the previous week (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association


Contact ALTA at 202-296-3671 or communications@alta.org.

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents. SoftPro is the nation's leading provider of closing and title software, consistently pushing the technological envelope to pioneer the most powerful and comprehensive closing and title automation software on the market. SoftPro's Award-Winning Software combines cutting-edge technology with outstanding support to make your business more productive, efficient and boost your revenue.