Applications Down In MBA Weekly Applications Survey

MBA (4/2/2008 ) Kemp, Carolyn
Following a sharp spike in activity the previous week, mortgage applications decreased despite flat interest rates, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 28.
The Market Composite Index fell to 688.3, a decrease of 28.7 percent on a seasonally adjusted basis from 965.9 one week earlier. On an unadjusted basis, the Index decreased 28.1 percent compared with the previous week but was up 4.8 percent compared with the same week one year earlier. The four-week moving average rose by 0.11 percent to 744.5 from 743.6.

The seasonally adjusted Refinance Index decreased 38.1 percent to 2636.0 from 4255.2 the previous week. The four-week moving average, however, was up 0.58 percent to 2918.7 from 2901.9. The refinance share of mortgage activity decreased to 53.4 percent of total applications from 62.0 percent the previous week.

The seasonally adjusted Purchase Index decreased 11.8 percent to 356.0 from 403.7 one week earlier. The Conventional Purchase Index decreased 11.8 percent, while the Government Purchase Index (largely FHA) decreased 11.8 percent. On an unadjusted basis, the Purchase Index decreased 11.8 percent to 396.2 from 449.2 the previous week. The four-week moving average was down 0.47 percent to 373.4 from 375.2.

The seasonally adjusted Conventional Index decreased 31.2 percent to 901.8 from 1310.4 the previous week; the seasonally adjusted Government Index decreased 15.1 percent to 332.4 from 391.7 the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.75 percent from 5.74 percent, with points increasing to 1.19 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 5.27 percent from 5.23 percent, with points decreasing to 1.13 from 1.15 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 7.0 percent from 7.02 percent, with points decreasing to 1.39 from 1.72 (including the origination fee) for 80 percent LTV loans. The ARM share of activity increased to 5.4 percent from 3.8 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.