MBA's Mortgage Applications Index Dropped 11% Last Week
|September 24, 2008|
Higher rates and tightening standards led to an 11% drop in loan appliactions according the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending September 19, 2008.
The Market Composite Index, a measure of mortgage loan application volume, was 591.4, a decrease of 10.6 percent on a seasonally adjusted basis from 661.7 one week earlier. On an unadjusted basis, the Index decreased 11.1 percent compared with the previous week and was down 9.3 percent compared with the same week one year earlier.
The Refinance Index decreased 11.2 percent to 2043.4 from the previous week and the seasonally adjusted Purchase Index decreased 10.0 percent to 342.2 from one week earlier. The Conventional Purchase Index decreased 10.4 percent while the Government Purchase Index (largely FHA) decreased 8.9 percent. The four week moving average for the seasonally adjusted Market Index is up 8.4 percent. The four week moving average for the seasonally adjusted Purchase index is up 1.9 percent, while this average is up 17.9 percent for the Refinance Index.
The refinance share of mortgage activity and the adjustable-rate mortgage (ARM) share of mortgage activity remained unchanged from the previous week at 51.6 percent and 4.0 percent respectively.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.08 percent from 5.82 percent, with points remaining at 1.13 (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 5.84 percent from 5.54 percent, with points increasing to 1.17 from 1.12 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 7.01 percent from 6.95 percent, with points decreasing to 0.33 from 0.34 (including the origination fee) for 80 percent LTV loans.