REFIs, FHA Lead Increase In MBA Weekly Survey

MBA (4/16/2008 ) Kemp, Carolyn
Mortgage application volume, led by refinancing and FHA activity, rose by 2.5 percent last week as key interest rates eased, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 11.
The Market Composite Index rose to 743.4, an increase of 2.5 percent on a seasonally adjusted basis from 725.6 one week earlier. On an unadjusted basis, the Index increased 2.7 percent compared with the previous week and was up 16.4 percent compared with the same week one year earlier. The four-week moving average for the seasonally adjusted Market Index rose 3 percent to 780.8 from 758.0.

The seasonally adjusted Refinance Index increased by 5.2 percent to 2866.0 from 2724.7 the previous week. The four-week moving average rose by 4.4 percent to 3120.5 from 2987.8. The refinance share of mortgage activity increased to 53.5 percent of total applications from 52.2 percent the previous week.

The seasonally adjusted Purchase Index decreased by 0.8 percent to 381.6 from 384.7 one week earlier. The Conventional Purchase Index decreased by 2.1 percent while the Government Purchase Index (largely FHA) increased 3.5 percent. The four-week moving average rose by 1.1 percent to 381.5 from 377.4.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.74 percent from 5.78 percent, with points decreasing to 1.05 from 1.11 (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 5.27 percent from 5.39 percent, with points increasing to 1.19 from 1.11 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages decreased to 7.02 percent from 7.06 percent, with points decreasing to 1.28 from 1.46 (including the origination fee) for 80 percent LTV loans. The ARM share of activity decreased to 6.0 percent from 6.5 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.