The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending Feb. 19, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 8.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7.3 percent compared with the previous week.
"As many East Coast markets were digging out from the blizzard last week, purchase applications fell, another indication that housing demand remains relatively weak," said Michael Fratantoni, MBA's vice president of research and economics. "With home prices continuing to drift amid an abundant inventory of homes on the market, potential homebuyers do not see any urgency to lock in purchases."
The Refinance Index decreased 8.9 percent from the previous week. The seasonally adjusted Purchase Index decreased 7.3 percent from one week earlier, putting the index at its lowest level since May 1997. The unadjusted Purchase Index decreased 3.6 percent compared with the previous week and was 13.4 percent lower than the same week one year ago.
The four week moving average for the seasonally adjusted Market Index is up 1.6 percent. The four week moving average is down 2.1 percent for the seasonally adjusted Purchase Index, while this average is up 3.2 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 68.1 percent of total applications from 69.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 4.7 percent from 4.4 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.03 percent from 4.94 percent, with points increasing to 1.34 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 4.35 percent from 4.33 percent, with points increasing to 1.31 from 1.02 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.80 percent from 6.67 percent, with points increasing to 0.33 from 0.32 (including the origination fee) for 80 percent LTV loans.
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