|Title: ||Mortgage Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (June 23, 2010) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 18,
2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.9 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index decreased 6.0 percent compared with the previous week.
The Refinance Index decreased 7.3 percent from the previous week and the seasonally adjusted Purchase Index decreased 1.2
percent from one week earlier. The unadjusted Purchase Index decreased 2.3 percent compared with the previous week and was
36.8 percent lower than the same week one year ago.
The decline in total purchase applications was driven by a 4.4 percent decrease in government applications, while conventional
purchase applications increased by 1.0 percent.
The four week moving average for the seasonally adjusted Market Index is down 0.5 percent. The four week moving average is
down 1.1 percent for the seasonally adjusted Purchase Index, while this average is down 0.4 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 73.8 percent of total applications from 74.8 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 4.9 percent from 5.2 percent of total applications from
the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.75 percent from 4.82 percent, with points increasing to 1.07 from 0.89 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
This is the lowest 30-year contract rate observed in the survey since the week ending May 15, 2009. The effective rate also
decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.19 percent from 4.23 percent, with points increasing to 1.00 from 0.83 (including the origination fee) for 80 percent LTV loans. Due to the increase in
points, the effective rate is unchanged from last week.
The average contract interest rate for one-year ARMs decreased to 7.05 percent from 7.07 percent, with points remaining constant at 0.27 (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.mortgagebankers.org.