The Refinance Index increased 18.2 percent from the previous week, following the third consecutive week where the 30-year fixed mortgage rate was below 5 percent, and is at its highest level since mid-May. The seasonally adjusted Purchase Index increased 13.2 percent from one week earlier, which puts the index at its highest level since January. The unadjusted Purchase Index increased 12.9 percent compared with the previous week and was 2.2 percent lower than the same period one year ago. Additionally, the seasonally adjusted Government Purchase index is at a record level in the survey after a 14.4 percent increase from the week before.
   
The four week moving average for the seasonally adjusted Market Index is up 4.2 percent.  The four week moving average is up 0.2 percent for the seasonally adjusted Purchase Index, while this average is up 6.7 percent for the Refinance Index.

The refinance share of mortgage activity increased to 66.3 percent of total applications from 65.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent from 6.2 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.89 percent from 4.94 percent, with points increasing to 1.13 from 0.94 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This rate is at its lowest level since May 2009 when it was 4.81 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.32 percent from 4.34 percent, with points increasing to 1.04 from 1.01 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year fixed-rate ever recorded in the survey.

The average contract interest rate for one-year ARMs increased to 6.56 percent from 6.40 percent, with points increasing to 0.30 from 0.29 (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.

Media inquiries should be directed to Carolyn Kemp at (202) 557-2727 or ckemp@mortgagebankers.org.

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 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 2,400 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.