Despite a Slight Decline in Morrtgage Rates Applications Decrease in Latest MBA Survey
|April 5, 2007|
Despite a slight decline in mortgage rates, this weeks MBA's Weekly Mortgage Applications Survey for the week ending March 30, 2007 also found a slight descrease in loan appication. The Market Composite Index, a measure of mortgage loan application volume, was 649.5, a decrease of 3.2 percent on a seasonally adjusted basis from 671 one week earlier. On an unadjusted basis, the Index decreased 3.2 percent compared with the previous week and was up 5.3 percent compared with the same week one year earlier.
The Refinance Index decreased 4.5 percent to 2098.3 from 2197.7 the previous week and the seasonally adjusted Purchase Index decreased 2 percent to 402.9 from 411.1 one week earlier. The seasonally adjusted Conventional Index decreased 3.8 percent to 956.4 from 993.8 the previous week, and the seasonally adjusted Government Index increased 3.7 percent to 137.7 from 132.8 the previous week.
The four week moving average for the seasonally adjusted Market Index is down 0.8 percent to 670.8 from 676.3. The four week moving average is down 0.1 percent to 409.7 from 410.3 for the Purchase Index, while this average is down 1.5 percent to 2204.2 from 2238.2 for the Refinance Index.
The refinance share of mortgage activity decreased to 44.5 percent of total applications from 45.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 19.2 from 20.2 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.13 percent from 6.04 percent, with points decreasing to 1.25 from 1.33 (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 5.85 from 5.77 percent, with points decreasing to 1.09 from 1.14 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 5.87 from 5.84 percent, with points remaining unchanged at 0.72 (including the origination fee) for 80 percent LTV loans.