Mortgage Applications Down Again In MBA Weekly Survey

MBA (4/30/2008 ) Kemp, Carolyn
Mortgage applications fell again last week even as key interest rates held steady, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 25.
The Market Composite Index fell by 11.1 percent to 567.0 on a seasonally adjusted basis from 637.6 one week earlier. On an unadjusted basis, the Index decreased 10.2 percent compared with the previous week and was down 14.2 percent compared with the same week one year earlier. The four-week moving average for the seasonally adjusted Market Index fell by 4.3 percent to 668.4 from 698.7.

The seasonally adjusted Refinance Index decreased 16.7 percent to 1905.2 from 2286.3 the previous week. The four-week moving average fell by 7 percent to 2445.6 from 2628.2. The refinance share of mortgage activity decreased to 45.7 percent of total applications from 49.2 percent the previous week.

The seasonally adjusted Purchase Index decreased 4.8. percent to 340.1 from 357.3 one week earlier. The Conventional Purchase Index decreased 5.2 percent while the Government Purchase Index (largely FHA) decreased 3.7 percent. The four-week moving average fell by 1.1 percent to 365.9 from 369.9.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.01 percent from 6.04 percent, with points increasing to 1.26 from 1.04 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.53 percent from 5.60 percent, with points increasing to 1.24 from 1.06 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 6.86 percent from 6.93 percent, with points increasing to 1.40 from 1.38 (including the origination fee) for 80 percent LTV loans. The ARM share of activity decreased to 5.9 percent from 6.6 percent of total applications from the previous week.

The survey covers 50 percent of all U.S. retail residential mortgage originations and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.