Mortgage Applications Activity Unchanged In Latest MBA Survey

February 20, 2003

Refi Index Remain Above 5000 While Interest Rates Are Near Record Lows

WASHINGTON, D.C. (February 20, 2003) - The Market Composite Index of mortgage loan applications -- a measure of mortgage loan applications for purchases and refinancings -- for the week ending February 14 decreased by less than 0.1 percent to 1082.8 on a seasonally-adjusted basis from 1083.1 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 Index increased 1.2 percent and was up 100.5 percent compared to the same week a year earlier.

The MBA seasonally adjusted Purchase Index increased to 334.1 from 328.8 the previous week. The seasonally adjusted Refinance Index decreased to 5438.1 from 5470.3 the previous week. Other seasonally adjusted index activity included the Conventional Index, which decreased to 1558.1 from 1568.3 the previous week. The Government Index increased to 289.8 from 273.3 the previous week.

Refinancing activity represented 72.5 percent of total applications, decreasing from 73.8 percent the previous week. The share of ARM activity remained the same as the previous week at 13.2 percent.

The average contract interest rate for 30-year fixed rate mortgages increased slightly 5.69 percent from the record low 5.68 percent the previous week, with points decreasing to 1.61 from 1.65 the previous week (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 slightly to 5.10 percent from 5.09 percent the previous week, with points decreasing to 1.49 from 1.60 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 1-year ARMs remained the same as the previous week at 3.61 percent, with points increasing to 0.99 from 0.95 the previous week (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association