The Refinance Index increased 12.7 percent from the previous week, the third increase in the last four weeks. The seasonally adjusted Purchase Index increased 1.0 percent from one week earlier, solely boosted by increased demand for government loans. This marks the fourth consecutive weekly gain – the first time this has happened since March, when fixed mortgage rates first dropped and stayed below 5 percent.
 
The four week moving average for the seasonally adjusted Market Index is up 3.5 percent.  The four week moving average is up 1.7 percent for the seasonally adjusted Purchase Index, while this average is up 4.8 percent for the Refinance Index.

The refinance share of mortgage activity increased to 56.5 percent of total applications from 53.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged from the previous week at 6.5 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.24 percent from 5.15 percent, with points increasing to 1.07 from 0.98 (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 4.58 percent from 4.52 percent, with points increasing to 1.18 from 0.93 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.74 percent from 6.66 percent, with points increasing to 0.17 from 0.07 (including the origination fee) for 80 percent LTV loans.

**SPECIAL NOTES**

The index values are no longer included in MBA’s Weekly Applications Survey press release, only the percentage changes.  If you would like to subscribe to MBA’s Weekly Applications Survey, please contact MBA Research at (202) 557-2830 or mbaresearch@mortgagebankers.org or click here.

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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.