For the week ending December 25, 2009, the Refinance Index decreased 30.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 4.0 percent from one week earlier. The following week, the Refinance Index decreased 1.6 percent and the seasonally adjusted Purchase Index increased 3.6 percent.  The unadjusted Purchase Index decreased 33.1 percent the week of Christmas and increased 5.0 percent the week following. This measure was 26.2 percent and 28.2 percent lower, respectively, than the same period a year ago.

The refinance share of mortgage activity for the week ending January 1, 2010 is 68.2 percent, a decrease from 69.6 percent for the week ending December 25, 2009.

For the week ending December 25, 2009, the average contract interest rate for 30-year fixed-rate mortgages increased to 5.08 percent from 4.92 percent, with points increasing to 1.48 from 1.23 (including the origination fee) for 80 percent loan-to-value (LTV) loans. For the week ending January 1, 2010, the average contract interest rate for 30-year fixed-rate mortgages increased to 5.18 percent with points decreasing to 1.28.

For the week ending December 25, 2009, the average contract interest rate for 15-year fixed-rate mortgages increased to 4.57 percent from 4.34 percent, with points decreasing to 0.91 from 1.03 (including the origination fee) for 80 percent LTV loans. For the week ending January 1, 2010, the average contract interest rate for 15-year fixed-rate mortgages increased to 4.62 percent, with points increasing to 0.98.

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 2,200 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.