|Title: ||Mortgage Purchase Applications Up, Refinance Applications Fall Slightly in Latest MBA Weekly Survey |
WASHINGTON, D.C. (September 8, 2010) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September
3, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally
adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.9 percent compared with the previous
The Refinance Index decreased 3.1 percent from the previous week. The seasonally adjusted Purchase Index increased 6.3 percent
from one week earlier. The unadjusted Purchase Index increased 4.0 percent compared with the previous week and was 38.8 percent
lower than the same week one year ago.
“Purchase applications increased last week, reaching the highest level since the end of May. However, purchase activity remains
well below levels seen prior to the expiration of the homebuyer tax credit, and is almost 40 percent below the level recorded
one year ago,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “On the other hand, refinance volume
dropped last week for the first time in six weeks, but the level of applications to refinance remains close to recent highs,
as historically low mortgage rates continue to draw borrowers into the market.”
The four week moving average for the seasonally adjusted Market Index is up 4.4 percent. The four week moving average is
up 1.3 percent for the seasonally adjusted Purchase Index, while this average is up 5.0 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 81.9 percent of total applications from 82.9 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.1 percent of total applications from the previous
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.50 percent from 4.43 percent, with points
decreasing to 0.96 from 1.34 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective
rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.00 percent from 3.88 percent, with points
decreasing to 0.87 from 1.45 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last
The average contract interest rate for one-year ARMs increased to 7.00 percent from 6.95 percent, with points decreasing to
0.21 from 0.23 (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 firstname.lastname@example.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
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.