Mortgage Loan Applications Down In Latest MBA Survey

January 3, 2002

Refinance Activity Decreases From Previous Week

WASHINGTON, D.C. (January 3) - The market composite index of mortgage loan applications-a measure of loan purchases and refinances-for the week ending December 28 decreased 39.9 percent to 329.6 on a seasonally adjusted basis from 548.2 the previous week, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. On an unadjusted basis, the application index decreased 51.7 percent but was up 12.1 percent compared to the same week a year earlier.

The MBA seasonally adjusted Purchase Index decreased to 220.6 from 373.5 the previous week. The Refinance Index decreased to 963.5 from 1564.4 the previous week. Other seasonally adjusted index activity included the Conventional Index, which decreased to 428.4 from 750.4 the previous week, and the Government Index, which decreased to 164.5 from 211.1 the previous week.

Refinancing activity represented 50.2 percent of total applications, increasing from 49.2 percent the previous week. The share of ARM activity increased slightly to 13.5 percent from 13.2 percent the previous week.

The average contract interest rate for30-year fixed rate mortgages was 7.12 percent, decreasing slightly from 7.13 the previous week, with points increasing to 1.37 from 1.31 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for15-year fixed rate mortgages was 6.52 percent, decreasing from 6.62 the previous week, with points increasing to 1.43 from 1.13 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for1-year ARMs was 4.95 percent, decreasing from 5.38 the previous week, with points increasing to 1.41 from 1.11 (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association


Contact ALTA at 202-296-3671 or communications@alta.org.

SoftPro, based in Raleigh, NC, offers a mature suite of products, designed specifically for the closing and title industry. Our mission is to serve our client base, with best-in-class products and services. Our products are modular so we don't force you to buy anything you don't need. You can always add on as your business grows. Unlike other software companies, we view the sale as the beginning of the relationship rather than the end. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.