Mortgage Loan Applications Decrease from Previous Week's Record High
August 28, 2002
Fixed Mortgage Rates Remain Near Record Lows
WASHINGTON, D.C. (August 28, 2002) The market composite index of mortgage loan applications -- a measure of mortgage loan applications for purchases and refinancings -- for the week ending August 23 decreased 4.2 percent to 1079.7 on a seasonally-adjusted basis from the previous week's record of 1127.4, on a seasonally adjusted basis, 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 4.8 percent but was up 94.7 percent compared to the same week a year earlier.
The MBA seasonally adjusted Purchase Index decreased to 344.7 from 371.6 the previous week. The seasonally adjusted Refinance Index decreased to 5355.4 from 5523.6 the previous week. The record high for the refinance index is 5534.5 and was set the week ended November 9, 2001. Other seasonally adjusted index activity included the Conventional Index, which decreased to 1567.0 from the previous week's record high of 1640.0. The Government Index decreased to 266.5 from 272.0 the previous week.
Refinancing activity represented 72.1 percent of total applications, increasing from 70.8 percent the previous week. The share of ARM activity increased to 13.8 percent from 13.4 percent the previous week.
The average contract interest rate for 30-year fixed rate mortgages decreased slightly to 6.16 percent from 6.18 percent the previous week, with points decreasing to 1.52 from 1.57 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The record low for the 30-year fixed rate of 6.13 was established the week ended August 9, 2002
The average contract interest rate for 15-year fixed rate mortgages decreased to 5.55 percent from 5.62 percent the previous week, with points increasing to 1.58 from to 1.52 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The record low for the 15-year fixed rate of 5.52 percent was established the week ended August 9, 2002.
The average contract interest rate for 1-year ARMs was 4.24 percent, decreasing from 4.31 percent the previous week, with points decreasing slightly to 1.12 from 1.14 the previous week (including the origination fee) for 80 percent LTV loans.
"Activity continues at very high levels as interest rates remain at record lows, " said Doug Dunan, MBA senior vice president and chief economist. "A slight decline on a week-to-week basis is not surprising because consumer behavior changes daily."
Source: Mortgage Bankers Association