Press Release - Weekly Application Survey


Title: Mortgage Applications Increase Significantly, Driven by Surge in Refinance Activity
Source:   MBA
Date: 8/10/2011

WASHINGTON, D.C. (August 10, 2011) — Mortgage applications increased 21.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 5, 2011. 

The Market Composite Index, a measure of mortgage loan application volume, increased 21.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 20.9 percent compared with the previous week. The Refinance Index increased 30.4 percent from the previous week. The seasonally adjusted Purchase Index decreased 0.9 percent from one week earlier. The unadjusted Purchase Index decreased 1.2 percent compared with the previous week and was 4.9 percent higher than the same week one year ago.

“Amid substantial market turmoil last week, mortgage rates dropped to their lowest levels of the year, and refinance applications jumped more than 30 percent to their highest levels of the year,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Over the past month, refinance application volume has increased by 63 percent.  Refinance applications for jumbo loans increased by almost 75 percent relative to last week. Despite these low mortgage rates, applications for home purchase have remained little changed through the summer.”

The four week moving average for the seasonally adjusted Market Index is up 9.7 percent. The four week moving average remained unchanged for the seasonally adjusted Purchase Index, while this average is up 13.7 percent for the Refinance Index.

The refinance share of mortgage activity increased to 75.6 percent of total applications from 70.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent from 6.6 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.37 percent from 4.45 percent, with points increasing to 1.07 from 0.78 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.52 percent, with points decreasing to 0.96 from 1.02 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please contact 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.