Skip to main content

Application Volume Rises by Five Percent Over Last Week in Latest MBA Survey

Jan 19, 2011

The Mortgage Bankers Association (MBA) has released its Weekly Mortgage Applications Survey for the week ending Jan. 14, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased five percent on a seasonally-adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.4 percent compared with the previous week. The Refinance Index increased 7.7 percent from the previous week. This is the third consecutive weekly increase in refinance applications and is the highest Refinance Index observed since the beginning of December. The seasonally adjusted Purchase Index decreased 1.9 percent from one week earlier. The unadjusted Purchase Index increased 3.1 percent compared with the previous week and was 16.0 percent lower than the same week one year ago. "Mortgage rates have moved somewhat lower since the beginning of the year, as mixed data on the job market continue to cloud the outlook for the economy," said Michael Fratantoni, MBA's vice president of research and economics. "Refinance applications have picked up, as borrowers take advantage of lower rates, but purchase applications remain quite low, indicating that home sales are unlikely to pick up any time soon." The four week moving average for the seasonally adjusted Market Index is up 1.4 percent. The four week moving average is down 0.8 percent for the seasonally adjusted Purchase Index, while this average is up 2.3 percent for the Refinance Index.]The refinance share of mortgage activity increased to 73.0 percent of total applications from 72.1 percent the previous week. This is the highest refinance share observed since the week ending December 10, 2010. The adjustable-rate mortgage (ARM) share of activity increased to five percent from 4.9 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.77 percent from 4.78 percent, with points increasing to 1.20 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week. The average contract interest rate for 15-year fixed-rate mortgages increased to 4.16 percent from 4.15 percent, with points decreasing to 0.90 from 1.01 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week. For more information, visit www.mortgagebankers.org.
About the author
Published
Jan 19, 2011
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024