Mortgage Applications Rose 2.9% Last Week
|May 14, 2008|
The Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey found that loan applications edged up for the week ending May 9, 2008.
The Market Composite Index, a measure of mortgage loan application volume, was 674.4, an increase of 2.9 percent on a seasonally adjusted basis from 655.4 one week earlier. On an unadjusted basis, the Index increased 2.9 percent compared with the previous week and was down 1.1 percent compared with the same week one year earlier.
The Refinance Index increased 6.5 percent to 2422.1 from 2273.8 the previous week and the seasonally adjusted Purchase Index decreased 0.7 percent to 378.5 from 381.3 one week earlier. The Conventional Purchase Index decreased 0.8 percent while the Government Purchase Index (largely FHA) decreased 0.7 percent. The four week moving average for the seasonally adjusted Market Index is down 2.7 percent to 633.6 from 650.8. The four week moving average is down 0.2 percent to 364.3 from 365.1 for the Purchase Index, while this average is down 4.8 percent to 2221.8 from 2332.8 for the Refinance Index.
The refinance share of mortgage activity increased to 48.7 percent of total applications from 47.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.3 from 6.8 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.82 percent from 5.91 percent, with points increasing to 1.23 from 1.12 (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 5.38 percent from 5.49 percent, with points increasing to 1.09 from 1.07 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 6.6 percent from 6.77 percent, with points decreasing to 1.31 from 1.35 (including the origination fee) for 80 percent LTV loans.