Mortgage Applications Down Slightly in MBA Weekly Survey

MBA (8/13/2008 ) Kemp, Carolyn
Mortgage application volume fell slightly as key mortgage rates ticked up, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 8.
The Market Composite Index fell to 425.9, a decrease of 1.5 percent on a seasonally adjusted basis from 432.6 one week earlier. On an unadjusted basis, the Index decreased by 2.2 percent compared with the previous week and was down by 36.9 percent compared with the same week one year earlier. The four-week moving average for the seasonally adjusted Market Index fell by 5.2 percent.

The seasonally adjusted Refinance Index decreased 4.2 percent to 1074.6 from 1121.8 the previous week. The four-week moving average fell by 7.9 percent. The refinance share of mortgage activity decreased to 35.2 percent of total applications from 35.9 percent the previous week.

The seasonally adjusted Purchase Index remained unchanged at 315.2. The Conventional Purchase Index decreased 1.2 percent to 477.6 while the Government Purchase Index (largely FHA) increased by 2.9 percent to 357.6. The four-week moving average for the Purchase Index fell by 3.4 percent.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.57 percent from 6.41 percent, with points increasing to 1.14 from 1.13 (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 6.17 percent from 6.02 percent, with points increasing to 1.06 from 1.02 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 7.15 percent from 7.17 percent, with points increasing to 0.38 from 0.36 (including the origination fee) for 80 percent LTV loans. The ARM share of activity increased to 7.3 percent from 6.9 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.