Mortgage Application Volume Rises 10.9 Percent
|June 11, 2008|
Mortgage application volume rose 10.9 percent during the week ending June 6, rebounding from a sharp decline one week earlier, according to the Mortgage Bankers Association's weekly application survey.
The Market Composite Index, a measure of mortgage loan application volume, was 557.1, an increase of 10.9 percent on a seasonally adjusted basis from 502.3 one week earlier. On an unadjusted basis, the Index increased 23 percent compared with the previous week and was down 16.5 percent compared with the same week one year earlier.
The Refinance Index increased 8.4 percent to 1622.1 from 1496.1 the previous week and the seasonally adjusted Purchase Index increased 12.8 percent to 376.2 from 333.6 one week earlier. The Conventional Purchase Index increased 11 percent while the Government Purchase Index (largely FHA) increased 17 percent.
The four week moving average for the seasonally adjusted Market Index is down 2.8 percent to 568.6 from 597.9. The four week moving average is up 1.7 percent to 353.8 from 354.3 for the Purchase Index, while this average is down 8 percent to 1835.6 from 2035.6 for the Refinance Index.
The refinance share of mortgage activity decreased to 39.8 percent of total applications from 40.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 10.3 from 8.7 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.24 percent from 6.17 percent, with points increasing to 1.12 from 1.06 (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 5.78 percent from 5.7 percent, with points increasing to 1.12 from 1.06 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.87 percent from 6.8 percent, with points decreasing to 1.42 from 1.44 (including the origination fee) for 80 percent LTV loans.