|Title: ||Purchase Activity Increases, Refinance Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (June 3, 2009) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 29,
2009. The Market Composite Index, a measure of mortgage loan application volume, was 658.7, a decrease of 16.2 percent on
a seasonally adjusted basis from 786.0 one week earlier. This week's results include an adjustment to account for the Memorial
Day holiday. On an unadjusted basis, the Index decreased 32.5 percent compared with the previous week and increased 14.4 percent
compared with the same week one year earlier.
The Refinance Index decreased 24.1 percent to 2953.6 from 3890.4 the previous week and the seasonally adjusted Purchase Index
increased 4.3 percent to 267.7 from 256.6 one week earlier.
The four week moving average for the seasonally adjusted Market Index is down 9.0 percent. The four week moving average is
up 0.3 percent for the seasonally adjusted Purchase Index, while this average is down 12.0 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 62.4 percent of total applications from 69.3 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 3.0 percent from 2.6 percent of total applications from
the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.25 percent from 4.81 percent, with points
decreasing to 1.02 from 1.28 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 44 basis
point increase in the 30-year rate was the largest since a 48 basis point increase in October 2008.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.8 percent from 4.44 percent, with points
decreasing to 1.10 from 1.16 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.61 percent from 6.55 percent, with points increasing to
0.15 from 0.12 (including the origination fee) for 80 percent LTV loans.
The survey covers over 50 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since
1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March
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.mba.org.