Applications Fall in MBA Weekly Survey

Submitted by Ronald Tennant with Metrocities Mortgage:

MBA (5/21/2008 ) Kemp, Carolyn
Mortgage application activity fell for the first time in two weeks as key interest rates edged up, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 16.
The Market Composite Index fell to 621.6, a decrease of 7.8 percent on a seasonally adjusted basis from 674.4 one week earlier. The four-week moving average also fell, by 0.6 percent to 629.6 from 633.6.

The seasonally adjusted Refinance Index decreased by 8.7 percent to 2210.5 from 2422.1 the previous week. The four-week moving average fell by 0.9 percent to 2202.9 from 2221.8. The refinance share of mortgage activity decreased to 48.2 percent of total applications from 48.7 percent the previous week.

The seasonally adjusted Purchase Index decreased by 6.9 percent to 352.5 from 378.5 one week earlier. The Conventional Purchase Index decreased 6.8 percent while the Government Purchase Index (largely FHA) decreased 7.0 percent. The four-week moving average decreased by 0.3 percent to 363.1 from 364.3.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.90 percent from 5.82 percent, with points decreasing to 1.12 from 1.23 (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 5.42 percent from 5.38 percent, with points increasing to 1.14 from 1.09 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 6.71 percent from 6.60 percent, with points increasing to 1.35 from 1.31 (including the origination fee) for 80 percent LTV loans. The ARM share of activity increased to 10.0 percent from 8.3 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.