Press Release - Weekly Application Survey

The Refinance Index increased 5.7 percent from the previous week and is at its highest level since May 1, 2009. The seasonally adjusted Purchase Index increased 0.6 percent from one week earlier. The unadjusted Purchase Index decreased 1.1 percent compared with the previous week and was 38.8 percent lower than the same week one year ago.

“The volume of refi applications last week was up 26% over their level four weeks ago.  Mortgage rates dropped to their lowest level in the survey, going back to 1990, as incoming data continue to indicate that economic growth has slowed,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “We are at a new 15 month high for the Refinance index.  With rates this low, many borrowers who refinanced in the past two years may well have an incentive to refinance again, and this is likely increasing refi application activity.”
 
The four week moving average for the seasonally adjusted Market Index is up 5.0 percent.  The four week moving average is down 0.3 percent for the seasonally adjusted Purchase Index, while this average is up 6.2 percent for the Refinance Index.

The refinance share of mortgage activity increased to 82.4 percent of total applications from 81.4 percent the previous week, which is the highest share observed since January 2009. The adjustable-rate mortgage (ARM) share of activity increased to 5.8 percent from 5.7 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.55 percent from 4.60 percent, with points decreasing to 0.89 from .92 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  This was the lowest 30-year contract rate ever recorded in the survey.  The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.91 percent from 3.99 percent, with points increasing to 1.64 from 1.05 (including the origination fee) for 80 percent LTV loans. This was the lowest 15-year contract rate ever recorded in the survey.  However due to the increase in points, the effective rate increased from last week.

The average contract interest rate for one-year ARMs decreased to 6.84 percent from 6.90 percent, with points increasing to 0.22 from 0.21 (including the origination fee) for 80 percent LTV loans.

If you would like to purchase a subscription of  MBA’s Weekly Applications Survey, please contact MBA Research at (202) 557-2830 or mbaresearch@mortgagebankers.org or click here.

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.