Application Activity Up Again in MBA Weekly Survey

MBA (7/9/2008 ) Kemp, Carolyn
Mortgage application volume rose for the second consecutive week despite an uptick in mortgage rates, the Mortgage Bankers Association reported today in its Weekly Mortgage Applications Survey for the week ending July 4.
Last week’s statistics include a one-day adjustment to account for the Independence Day holiday.

The Market Composite Index rose to 513.4, an increase of 7.5 percent on a seasonally adjusted basis from 477.7 one week earlier. On an unadjusted basis, the Index decreased by 14.1 percent compared with the previous week and was down by 18.1 percent compared with the same week one year earlier. The four-week moving average fell by 2.3 percent to 489.7 from 501.1.

The seasonally adjusted Refinance Index increased by 8.7 percent to 1379.3 from 1269.2 the previous week. However, the four-week moving average fell by 4.4 percent to 1309.8 from 1370.5. The refinance share of mortgage activity increased to 37.3 percent of total applications from 36.8 percent the previous week.

The seasonally adjusted Purchase Index increased by 6.7 percent to 365.8 from 342.8 one week earlier. The Conventional Purchase Index increased by 1.6 percent while the Government Purchase Index (largely FHA) increased by 19.8 percent. The four-week moving average fell by 0.9 percent to 350.0 from 353.2.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.43 percent from 6.33 percent, with points decreasing to 1.06 from 1.09 (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 5.94 percent from 5.90 percent, with points increasing to 1.10 from 1.02 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 7.24 percent from 7.14 percent, with points decreasing to 0.26 from 0.31 (including the origination fee) for 80 percent LTV loans. The ARM share of activity increased to 10.0 percent from 8.5 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.