Mortgage Applications Increase in MBA Weekly Survey

MBA (6/11/2008 ) Kemp, Carolyn
After three weeks of declines, mortgage activity picked up in the past week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending June 6.
The Market Composite Index rose to 557.1, an increase of 10.9 percent on a seasonally adjusted basis from 502.3 one week earlier. On an unadjusted basis, the Index increased by 23 percent compared with the previous week but was still down by 16.5 percent compared with the same week one year earlier. The four-week moving average fell by 2.8 percent to 568.6 from 597.9.

The seasonally adjusted Refinance Index increased by 8.4 percent to 1622.1 from 1496.1 the previous week. However, the four-week moving average fell by 8 percent to 1835.6 from 2035.6. The refinance share of mortgage activity decreased to 39.8 percent of total applications from 40.6 percent the previous week.

The seasonally adjusted Purchase Index increased by 12.8 percent to 376.2 from 333.6 one week earlier. The Conventional Purchase Index increased by 11 percent, while the Government Purchase Index (largely FHA) increased by 17 percent. The four-week moving average rose by 1.7 percent to 353.8 from 354.3.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.24 percent from 6.17 percent, with points increasing to 1.12 from 1.06 (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 5.78 percent from 5.70 percent, with points increasing to 1.12 from 1.06 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 6.87 percent from 6.80 percent, with points decreasing to 1.42 from 1.44 (including the origination fee) for 80 percent LTV loans. The ARM share of activity increased to 10.3 percent from 8.7 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.