Mortgage Applications Decline In MBA Weekly Survey

MBA (10/1/2008 ) Kemp, Carolyn
Mortgage application activity fell for the second consecutive week as key interest rates held steady, the Mortgage Bankers Association reported in its Weekly Mortgage Applications Survey for the week ending September 26.
The Market Composite Index fell to 455.4, a decrease of 23.0 percent on a seasonally adjusted basis from 591.4 one week earlier. On an unadjusted basis, the Index decreased by 23.4 percent compared with the previous week and fell by 28.4 percent compared with the same week one year earlier. However, based on previous weeks’ activity, the four-week moving average rose by 0.1 percent.

The seasonally adjusted Refinance Index decreased by 34.7 percent to 1333.9 from the previous week. The four-week moving average rose by 4.1 percent. The refinance share of mortgage activity decreased to 44.0 percent of total applications from 51.6 percent the previous week.

The seasonally adjusted Purchase Index decreased by 10.9 percent to 304.8 from one week earlier. The Conventional Purchase Index decreased by 9.7 percent while the Government Purchase Index (largely FHA) decreased by 14.1 percent. The four-week moving average decreased by 3.1 percent

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.07 percent from 6.08 percent, with points decreasing to 1.12 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 decreased to 5.82 percent from 5.84 percent, with points decreasing to 1.11 from 1.17 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 7.19 percent from 7.01 percent, with points decreasing to 0.24 from 0.33 (including the origination fee) for 80 percent LTV loans. The ARM share of activity decreased to 3.3 percent from 4.0 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.