Loan Applications Increased in the Latest MBA Weekly Survey
|September 10, 2008|
Lower rates helped to nudged loan applications up 9.5 percent for the week ending September 5, 2008.
Accordings to MBA's Market Composite Index, a measure of mortgage loan application volume, was 496.2, an increase of 9.5 percent on a seasonally adjusted basis from 453.1 one week earlier. This week’s results include an adjustment to account for the Labor Day Holiday. On an unadjusted basis, the Index decreased 13.6 percent compared with the previous week and was down 24.4 percent compared with the same Labor Day week one year earlier.
The Refinance Index, also adjusted for the holiday, increased 15.4 percent to 1222.9 from the previous week. Without the holiday adjustment, the Refinance Index dropped 7.7% percent from the previous week.
The seasonally adjusted Purchase Index increased 6.4 percent to 371.5 from one week earlier. The Conventional Purchase Index increased 14.4 percent while the Government Purchase Index (largely FHA) decreased 8.7 percent. The four week moving average for the seasonally adjusted Market Index is up 4.1 percent. The four week moving average for the seasonally adjusted Purchase index is up 4.4 percent, while this average is up 3.5 percent for the Refinance Index.
The refinance share of mortgage activity increased to 36.3 percent of total applications from 34.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.4 from 6.6 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.06 percent from 6.39 percent, with points increasing to 1.02 from 1.00 (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 5.73 percent from 5.96 percent, with points decreasing to 0.98 from 1.03 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 7.00 percent from 7.11 percent, with points decreasing to 0.30 from 0.35 (including the origination fee) for 80 percent LTV loans.