Press Release - Weekly Application Survey


Title: Mortgage Applications Increase in Latest MBA Weekly Survey
Source:   MBA
Date: 9/21/2011

WASHINGTON, D.C. (September 21, 2011) — Mortgage applications increased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s   Weekly Mortgage Applications Survey for the week ending September 16, 2011. 
The Market Composite Index, a measure of mortgage loan application volume, increased 0.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 25.2 percent compared with the previous week, which included the Labor Day holiday. The Refinance Index increased 2.2 percent from the previous week. The seasonally adjusted Purchase Index decreased 4.7 percent from one week earlier. The unadjusted Purchase Index increased 17.1 percent compared with the previous week.

The four week moving average for the seasonally adjusted Market Index is down 3.15 percent. The four week moving average is down 0.54 percent for the seasonally adjusted Purchase Index, while this average is down 3.91 percent for the Refinance Index.

The refinance share of mortgage activity increased to 78.3 percent of total applications from 76.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.7 percent from 7.3 percent of total applications from the previous week.

During the month of August, the investor share of applications for home purchase was at 5.7 percent, a slight increase from 5.5 percent in July. This change was led by an increase in the Pacific region. In addition, the share of purchase mortgages for second homes increased to 6.0 percent in August from 5.9 percent in July.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.29 percent, with points increasing to 0.41 from 0.38 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.55 percent from 4.57 percent, with points increasing to 0.46 from 0.42 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA  decreased to 4.07 percent from 4.08 percent, with points increasing to 0.51 from 0.48 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.46 percent from 3.52 percent, with points increasing to 0.45 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.96 percent from 2.99 percent, with points increasing to 0.49 from 0.46 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.

This week’s results are based on an enhanced sample which captures more than 75% of all retail and consumer direct channel mortgage applications, compared to 50% previously. This expansion in survey coverage will benefit all users of the survey as it will increase the representativeness of the data.

Changes to the Weekly Application Survey include:

• The survey captures more than 75% of all U.S. retail and consumer direct mortgage applications, compared to 50% previously.

• MBA has tracked the old sample together with the new sample since January 14, 2011 to ensure that the new information is comparable with historical data.

• Due to the high correlation between the old sample and the new sample, no restatement of the historical data appears necessary.

• The release now includes additional information regarding mortgage rates, including reporting on 5/1 ARM rates and 30-year fixed rates for jumbo loans.

For more information on this transition, including Frequently Asked Questions, new Methodology Documents, and presentation materials regarding the enhanced survey, please visit www.mortgagebankers.org/WeeklyApps

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please contact MBA Research at (202) 557-2821 or mbaresearch@mortgagebankers.org or click here.

The survey covers over 75 percent of all U.S. retail and consumer direct residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

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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.