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MBA reports: Apps drop during the holiday season

The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the weeks ending Dec. 25, 2009 and Jan. 1, 2010. For the week ending Dec. 25, 2009, the Market Composite Index, a measure of mortgage loan application volume, decreased 22.8 percent on a seasonally adjusted basis from the prior week. For the week ending January 1, 2010, this index increased 0.5 percent on a seasonally adjusted basis. Both weeks' results include an adjustment to account for the Christmas and New Year's Day holidays. On an unadjusted basis, the Index decreased 46.9 percent the week before Christmas and increased 0.4 percent the week after.
For the week ending Dec. 25, 2009, the Refinance Index decreased 30.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 4.0 percent from one week earlier. The following week, the Refinance Index decreased 1.6 percent and the seasonally adjusted Purchase Index increased 3.6 percent. The unadjusted Purchase Index decreased 33.1 percent the week of Christmas and increased 5.0 percent the week following. This measure was 26.2 percent and 28.2 percent lower, respectively, than the same period a year ago.
The refinance share of mortgage activity for the week ending Jan. 1, 2010 is 68.2 percent, a decrease from 69.6 percent for the week ending Dec.25, 2009.
For the week ending Dec. 25, 2009, the average contract interest rate for 30-year fixed-rate mortgages increased to 5.08 percent from 4.92 percent, with points increasing to 1.48 from 1.23 (including the origination fee) for 80 percent loan-to-value (LTV) loans. For the week ending Jan. 1, 2010, the average contract interest rate for 30-year fixed-rate mortgages increased to 5.18 percent with points decreasing to 1.28.
For the week ending Dec. 25, 2009, the average contract interest rate for 15-year fixed-rate mortgages increased to 4.57 percent from 4.34 percent, with points decreasing to 0.91 from 1.03 (including the origination fee) for 80 percent LTV loans. For the week ending Jan. 1, 2010, the average contract interest rate for 15-year fixed-rate mortgages increased to 4.62 percent, with points increasing to 0.98.
For more information, visit www.mortgagebankers.org.
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