Refinance Share Up In Latest Mortgage Applications Survey
June 8, 2005
WASHINGTON, D.C. - The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 3. The Market Composite Index - a measure of mortgage loan application volume - was 755.5, an increase of 6.5 percent on a seasonally adjusted basis from 709.1 one week earlier. The seasonal figures also include an adjustment for the Memorial Day holiday. On an unadjusted basis, the Index decreased 4.9 percent compared with last week but was up 31.5 percent compared with the same week one year earlier.
"With the 30-year fixed-rate mortgage rate declining to 5.55 percent, the refinance share of applications has increased to 42.9 percent, a level last seen in March of this year," said Michael Fratantoni, senior director of single-family research and economics.
The seasonally-adjusted Purchase Index increased by 3.6 percent to 479.3 from 462.7 the previous week whereas the seasonally-adjusted Refinance Index increased by 10.3 percent to 2362.1 from 2142.1 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which increased 6.6 percent to 1135.1 from 1065.0 the previous week, and the Government Index, which increased 6.0 percent to 121.9 from 115.0 the previous week.
The refinance share of mortgage activity increased to 42.9 percent of total applications from 41.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 31.7 percent of total applications from 33.3 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.55 percent from 5.61 percent one week earlier, with points decreasing to 1.12 from 1.07 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages remained at 5.13 percent, with points decreasing to 1.11 from 1.17 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs remained at 4.09 percent, with points increasing to 1.00 from 0.92 (including the origination fee) for 80 percent LTV loans.