Mortgage Applications Increase Slightly in Latest MBA Weekly Survey
|September 4, 2007|
The Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey found that applications increased slightly for the week ending August 31, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 622.9, an increase of 1.3 percent on a seasonally adjusted basis from 615.2 one week earlier. On an unadjusted basis, the Index decreased 0.2 percent compared with the previous week and was up 10 percent compared with the same week one year earlier.
The Refinance Index increased 2.3 percent to 1770.2 from 1729.6 the previous week and the seasonally adjusted Purchase Index increased 0.4 percent to 425.8 from 424.0 one week earlier. On an unadjusted basis, the Purchase Index decreased 1.9 percent to 431.1 from 439.5 the previous week. The seasonally adjusted Conventional Index increased 0.3 percent to 893.1 from 890.5 the previous week, and the seasonally adjusted Government Index increased 10.4 percent to 172.3 from 156.1 the previous week. The four week moving average for the seasonally adjusted Market Index is down 1.3 percent to 639.5 from 647.9. The four week moving average is down 1.2 percent to 439.0 from 444.4 for the Purchase Index, while this average is down 1.5 percent to 1808.9 from 1836.6 for the Refinance Index.
The refinance share of mortgage activity increased to 41.4 percent of total applications from 40.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 12.6 from 15.0 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.42 percent from 6.41 percent, with points decreasing to 1.09 from 1.48 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.10 percent, with points decreasing to 1.16 from 1.19 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.52 from 6.51 percent, with points decreasing to 0.93 from 1.00 (including the origination fee) for 80 percent LTV loans.