|Title: ||Mortgage Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (April 14, 2010) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April
9, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 9.6 percent on a seasonally
adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 9.5 percent compared with the previous
week. This is the third lowest Market Index recorded in the survey since the end of June 2009.
"Applications for government mortgages dropped substantially last week, following the implementation of an increase in FHA
mortgage insurance premiums," said Mike Fratantoni, MBA's Vice President of Research and Economics. "Applications for conventional
mortgages also dropped last week, with refinance application volume continuing to drop following last week's jump in rates.”
The Refinance Index decreased 9.0 percent from the previous week, marking the index’s fifth consecutive decline. The seasonally
adjusted Purchase Index decreased 10.5 percent from one week earlier. The unadjusted Purchase Index decreased 10.0 percent
compared with the previous week and was 17.5 percent lower than the same week one year ago. The decline in purchase applications
was driven by government purchase applications, which decreased 19.1 percent from last week, compared to a decrease of 2.0
percent in conventional purchase applications.
The four week moving average for the seasonally adjusted Market Index is down 6.2 percent. The four week moving average is
down 0.9 percent for the seasonally adjusted Purchase Index, while this average is down 8.8 percent for the Refinance Index.
The refinance share of mortgage activity increased to 58.9 percent of total applications from 58.7 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.3 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 5.17 percent from 5.31 percent, with points
increasing to 0.91 from 0.64 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective
rate also decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.45 percent from 4.54 percent, with points
decreasing to 0.80 from 0.92 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased
from last week.
The average contract interest rate for one-year ARMs decreased to 7.02 percent from 7.03 percent, with points decreasing to
0.27 from 0.29 (including the origination fee) for 80 percent LTV loans.
If you would like to subscribe to MBA’s Weekly Applications Survey, please contact MBA Research at (202) 557-2830 or email@example.com or click here.
Media inquiries should be directed to Carolyn Kemp at (202) 557-2727 or firstname.lastname@example.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
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.