Refinancings Push Mortgage Application Volume Higher
|January 30, 2008|
The Mortgage Bankers Association (MBA) said its Weekly Mortgage Applications Survey for the week ending January 25, 2008 rose 7.5 percent to a four-year high level.
The Market Composite Index, a measure of mortgage loan application volume, was 1054.9, an increase of 7.5 percent on a seasonally adjusted basis from 981.5 one week earlier. On an unadjusted basis, the Index increased 10.5 percent compared with the previous week and was up 70.7 percent compared with the same week one year earlier.
The Refinance Index increased 22.1 percent to 5103.6 from 4178.2 the previous week and the seasonally adjusted Purchase Index decreased 17.7 percent to 362.0 from 439.9 one week earlier. The Conventional Purchase Index decreased 18.9 percent while the Government Purchase Index (largely FHA) decreased 10.0 percent. On an unadjusted basis, the Purchase Index decreased 12.3 percent to 324.4 from 369.7 the previous week. The seasonally adjusted Conventional Index increased 8.8 percent to 1537.6 from 1413.7 the previous week, and the seasonally adjusted Government Index decreased 4.1 percent to 250.2 from 260.9 the previous week. The four week moving average for the seasonally adjusted Market Index is up 16.7 percent to 912.2 from 782.0. The four week moving average is up 0.1 percent to 419.3 from 419.0 for the Purchase Index, while this average is up 29.3 percent to 3837.9 from 2967.2 for the Refinance Index.
The refinance share of mortgage activity increased to 73.0 percent of total applications from 66.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.6 from 9.3 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.60 percent from 5.49 percent, with points decreasing to 1.06 from 1.07 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.04 percent from 4.96 percent, with points decreasing to 1.12 from 1.22 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 5.70 percent from 5.51 percent, with points decreasing to 0.97 from 1.01 (including the origination fee) for 80 percent LTV loans.