|Title: ||Mortgage Refinance Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (April 7, 2010) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 2,
2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 11.0 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index decreased 10.5 percent compared with the previous week.
“Mortgage rates jumped last week as the Federal Reserve completed their purchases of mortgage-backed securities,” said Michael
Fratantoni, MBA’s Vice President of Research and Economics. “Refinance application volume dropped as mortgage rates reached
their highest level since August 2009. Purchase volume was essentially unchanged relative to the prior week going into the
The Refinance Index decreased 16.9 percent from the previous week and the seasonally adjusted Purchase Index increased 0.2
percent from one week earlier. The unadjusted Purchase Index increased 0.5 percent compared with the previous week and was
18.1 percent lower than the same week one year ago. The government purchase index increased significantly for the third straight
week and as a result, the government share of purchase applications increased to 49.9 percent, its highest level since February
1990 and the third highest level in the history of the data.
The four week moving average for the seasonally adjusted Market Index is down 3.8 percent. The four week moving average is
up 3.2 percent for the seasonally adjusted Purchase Index, while this average is down 6.9 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 58.7 percent of total applications from 63.2 percent the previous week,
marking the lowest share observed in the survey since the week ending August 28, 2009. The adjustable-rate mortgage (ARM)
share of activity increased to 6.2 percent from 5.2 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.31 percent from 5.04 percent, with points decreasing to 0.64 from 1.07 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
This is the highest 30-year rate recorded in the survey since the first week of August 2009. The effective rate also increased
from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.54 percent from 4.34 percent, with points decreasing to 0.92 from 0.98 (including the origination fee) for 80 percent LTV loans. The effective rate also
increased from last week.
The average contract interest rate for one-year ARMs increased to 7.03 percent from 6.88 percent, with points decreasing to 0.29 from 0.31 (including the origination fee) for 80 percent LTV loans.
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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.