The Refinance Index decreased 21.6 percent from the previous week.  This is the third weekly decrease for the Refinance Index which reached its lowest level since June 2010.  The seasonally adjusted Purchase Index increased 1.1 percent from one week earlier and is at its highest level  since the beginning of May 2010. The unadjusted Purchase Index decreased 22.9 percent compared with the previous week and was 2.7 percent higher than the same week one year ago.
 
The four week moving average for the seasonally adjusted Market Index is down 5.8 percent.  The four week moving average is up 3.8 percent for the seasonally adjusted Purchase Index, while this average is down 8.2 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 74.9 percent of total applications from 78.6 percent the previous week. This is the third consecutive weekly decrease for refinance share which is at its lowest level since June 2010. The adjustable-rate mortgage (ARM) share of activity increased to 5.7 percent from 5.3 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.56 percent from 4.50 percent, with points increasing to 0.96 from 0.87 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate increased for the fourth time in five weeks and is at the highest level reported since August 2010.  The effective rate also increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.91 percent from 3.83 percent, with points decreasing to 0.88 from 1.04 (including the origination fee) for 80 percent LTV loans. The effective rate also 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.mortgagebankers.org.