Press Release - Weekly Application Survey


Title: Mortgage Applications Increase in Latest MBA Weekly Survey
Source:   MBA
Date: 11/10/2010

WASHINGTON, D.C. (November 10, 2010) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November 5, 2010.  The Market Composite Index, a measure of mortgage loan application volume, increased 5.8 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 5.4 percent compared with the previous week.

The Refinance Index increased 6.0 percent from the previous week.  The seasonally adjusted Purchase Index increased 5.5 percent from one week earlier. This is the third consecutive weekly increase in purchase applications. The unadjusted Purchase Index increased 3.1 percent compared with the previous week and was 14.0 percent lower than the same week one year ago. The conventional purchase index increased 5.4 percent to its highest level since May of this year, on a seasonally adjusted basis. On a non-seasonally adjusted basis, the conventional purchase index was at the highest level observed since early October.

“Although mortgage rates were little changed following the Federal Reserve’s decision to purchase $600 billion of Treasury bonds over the next eight months, mortgage applications increased last week,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.  “The increases in purchase applications we have seen over the past couple of weeks align with the better than expected news from October’s employment report and other data indicating some improvement in the economy’s growth prospects.  Refinance applications increased as rates continued to hover near record lows.”
 
The four week moving average for the seasonally adjusted Market Index is down 1.9 percent.  The four week moving average is up 1.0 percent for the seasonally adjusted Purchase Index, while this average is down 2.6 percent for the Refinance Index.

The refinance share of mortgage activity increased to 81.7 percent of total applications from 81.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.3 percent from 5.4 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 4.28 percent, with points decreasing to 1.05 from 1.07 (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 remained unchanged at 3.64 percent, with points also remaining unchanged at 1.08 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.


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.mba.org.