Mortgage Applications Up Slightly In MBA Weekly Survey

MBA (10/8/2008 ) Kemp, Carolyn
Mortgage applications rose for the first time in three weeks as key interest rates fell back below 6 percent, the Mortgage Bankers Association reported in its Weekly Mortgage Applications Survey for the week ending October 3.
The Market Composite Index rose to 465.5, an increase of 2.2 percent on a seasonally adjusted basis from 455.4 one week earlier. On an unadjusted basis, the Index increased by 2.2 percent compared with the previous week and was down 28.6 percent compared with the same week one year earlier. The four-week moving average for the seasonally adjusted Market Index fell by 1.4 percent.

The seasonally adjusted Refinance Index increased by 0.9 percent to 1345.8 from the previous week. The four-week moving average rose by 1.8 percent. The refinance share of mortgage activity decreased to 43.4 percent of total applications from 44.0 percent the previous week.

The seasonally adjusted Purchase Index increased by 3.2 percent to 314.5 from one week earlier. The Conventional Purchase Index increased by 0.7 percent while the Government Purchase Index (largely FHA) increased by 9.9 percent. The four-week moving average fell by 4.1 percent. Data for government applications were revised from the first week of June through the last week of September. As a result, some historical series were revised.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.99 percent from 6.07 percent, with points decreasing to 1.09 from 1.12 (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 5.71 percent from 5.82 percent, with points increasing to 1.16 from 1.11 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages remained unchanged at 6.60 percent, with points increasing to 0.37 from 0.33 (including the origination fee) for 80 percent LTV loans. The ARM share of activity decreased to 2.3 percent from 2.5 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.