Applications Fall for Second Week in MBA Weekly Survey

MBA (5/28/2008 ) Kemp, Carolyn
Mortgage application activity fell for the second consecutive week as key interest rates edged up, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 23.
The Market Composite Index fell to 593.3, a decrease of 4.6 percent on a seasonally adjusted basis from 621.6 one week earlier. On an unadjusted basis, the Index decreased by 4.6 percent compared with the previous week and was down by 7.5 percent compared with the same week one year earlier. However, on the strength of activity at the beginning of the month, the four-week moving average for the seasonally adjusted Market Index rose by 1 percent to 636.2 from 629.6.

The seasonally adjusted Refinance Index decreased by 8.9 percent to 2013.5 from 2210.5 the previous week. However, the four-week moving average rose by 1.2 percent to 2230.0 from 2202.9. The refinance share of mortgage activity decreased to 46.1 percent of total applications from 48.2 percent the previous week.

The seasonally adjusted Purchase Index increased by 0.1 percent to 352.7 from 352.5 one week earlier. The Conventional Purchase Index increased by 0.8 percent while the Government Purchase Index (largely FHA) decreased by 2.2 percent. The four-week moving average rose by0.9 percent to 366.2 from 363.1

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.96 percent from 5.90 percent, with points decreasing to 1.11 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 increased to 5.49 percent from 5.42 percent, with points increasing to 1.15 from 1.14 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 6.92 percent from 6.71 percent, with points increasing to 1.42 from 1.35 (including the origination fee) for 80 percent LTV loans. The ARM share of activity decreased to 9.3 percent from 10.0 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.