The seasonally-adjusted Refinance Index increased by 6.5 percent to 2022.2 from 1897.9 the previous week and the Purchase Index increased by 2.7 percent to 412.9 from 402.2 one week earlier. The Refinance Index is at its highest level since October 2005. The seasonally-adjusted Conventional Index increased by 4.3 percent to 961.1 from 921.1 the previous week, and the seasonally-adjusted Government Index increased 3.4 percent to 124.5 from 120.4 the previous week.
 
The four week moving average for the seasonally-adjusted Market Index is up 2.6 percent to 606.8 from 591.5.  The four week moving average is up 1.8 percent to 393.1 from 386.2 for the Purchase Index, while this average is up 3.7 percent to 1854.9 from 1788.9 for the Refinance Index.

The refinance share of mortgage activity increased to 48 percent of total applications from 46.3 percent the previous week. The refinance share is at its highest level since February 2005. The adjustable-rate mortgage (ARM) share of activity decreased to 25.5 percent of total applications from 26.4 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.15 percent from 6.24 percent, with points decreasing to 0.98 from 1.08 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year rate is at its lowest since January 2006.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.85 percent from 5.96 percent, with points increasing to 1.00 from 0.97 (including the origination fee) for 80 percent LTV loans. 

The average contract interest rate for one-year ARMs decreased to 5.87 percent from 5.89, with points decreasing to 0.78 from 0.8 (including the origination fee) for 80 percent LTV loans.

**SPECIAL NOTES**

The survey covers approximately 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.  Base period and value for all indexes is March 16, 1990=100.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.