Mortgage Application Volume Falls As Rates Rise
|May 28, 2008|
A slight uptick in rates helped to depress new loans applications according to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending May 23, 2008.
The Market Composite Index, a measure of mortgage loan application volume, was 593.3, a decrease of 4.6 percent on a seasonally adjusted basis from 621.6 one week earlier. On an unadjusted basis, the Index decreased 4.6 percent compared with the previous week and was down 7.5 percent compared with the same week one year earlier.
The Refinance Index decreased 8.9 percent to 2013.5 from 2210.5 the previous week and the seasonally adjusted Purchase Index increased 0.1 percent to 352.7 from 352.5 one week earlier. The Conventional Purchase Index increased 0.8 percent while the Government Purchase Index (largely FHA) decreased 2.2 percent. On an unadjusted basis, the Conventional Purchase Index increased 0.1 percent to 517.7 from 517.0 the previous week. The four week moving average for the seasonally adjusted Market Index is up 1 percent to 636.2 from 629.6. The four week moving average is up 0.9 percent to 366.2 from 363.1 for the Purchase Index, while this average is up 1.2 percent to 2230.0 from 2202.9 for the Refinance Index.
The refinance share of mortgage activity decreased to 46.1 percent of total applications from 48.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.3 from 10.0 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.96 percent from 5.90 percent, with points decreasing to 1.11 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 increased to 5.49 percent from 5.42 percent, with points increasing to 1.15 from 1.14 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.92 percent from 6.71 percent, with points increasing to 1.42 from 1.35 (including the origination fee) for 80 percent LTV loans.