Skip to main content

Apps decrease as rate jump slows refi activity in latest MBA Weekly Survey

Aug 12, 2009

The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending Aug. 7, 2009. The Market Composite Index, a measure of mortgage loan application volume decreased 3.5 percent on a seasonally-adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.7 percent compared with the previous week and increased 16.1 percent compared with the same week one year earlier. The seasonally-adjusted Purchase Index increased 1.1 percent--the third, albeit small, gain in the last four weeks. The Refinance Index decreased 7.2 percent, resulting from the increase in the average 30 year fixed mortgage rate and reversing the 7.2 percent increase in the prior week. The four-week moving average for the seasonally-adjusted Market Index is down 0.7 percent. The four week moving average is down 2.0 percent for the Refinance Index. For the seasonally adjusted Purchase Index, this average is up 0.8 percent and is nearly eight percent above its recent low at the end of February. The behavior of the four-week moving average of the Purchase Index is consistent with the view that home sales hit bottom earlier this year and are now in a gradual recovery. The refinance share of mortgage activity decreased to 52.3 percent of total applications from 54.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.8 percent from 5.4 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 5.38 percent from 5.17 percent, with points increasing to 1.18 from 1.02 (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 4.71 percent from 4.60 percent, with points increasing to 1.20 from 1.00 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs increased to 6.71 percent from 6.67 percent, with points decreasing to 0.08 from 0.09 (including the origination fee) for 80 percent LTV loans. For more information, visit www.mortgagebankers.org.
About the author
Published
Aug 12, 2009
STRATMOR, Teraverde Deal A 'Merger Of Equals'

The recent merger of mortgage advisory firms came without the need to lay people off or make any major staffing changes.

May 23, 2024
NEXA Pays Loan Officers 100% Of Commission Splits

LOs won't pay per-file fees or other hidden fees with NEXA100, says NEXA Founder and CEO Mike Kortas.

May 22, 2024
The Right Prescription

‘Doctor Loans’ making healthy strides in Florida

May 21, 2024
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024