| Title: | Mortgage Applications Increase in Latest MBA Weekly Survey |
| Source: | MBA |
| Date: | 5/9/2012 |
WASHINGTON, D.C. (May 9, 2012) — Mortgage applications increased 1.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending
May 4, 2012.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.7 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index increased 2.0 percent compared with the previous week. Increases
to the seasonally adjusted Market Composite and Purchase indices were driven by increases in their Conventional components.
Application activity within the Government market decreased for both of these measures from last week. Likewise, the Refinance
Index increased 1.3 percent from the previous week, driven by a 1.8 percent increase to the Conventional Refinance Index,
while the Government Refinance Index decreased 2.3 percent. The seasonally adjusted Purchase Index increased 3.4 percent
from one week earlier, spurred by a 5.4 percent increase in the seasonally adjusted Conventional Purchase Index. The unadjusted
Purchase Index increased 3.8 percent compared with the previous week and was 0.4 percent lower than the same week one year
ago.
The four week moving average for the seasonally adjusted Market Index is up 1.13 percent. The four week moving average is
down 0.82 percent for the seasonally adjusted Purchase Index, while this average is up 1.81 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 72.1 percent of total applications from 72.6 percent the previous week.
This is the lowest refinance share since April 6, 2012. The government purchase share decreased over the week from 37.0 percent
to 35.8 percent of all purchase applications. This is the lowest government purchase share since March 27, 2009.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased
to 4.01 percent from 4.05 percent, with points decreasing to 0.41 from 0.44 (including the origination fee) for 80 percent
loan-to-value ratio (LTV) loans. This is the lowest 30-year fixed interest rate recorded in the history of the survey.
The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased
to 4.29 percent from 4.32 percent, with points decreasing to 0.36 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 30-year fixed-rate mortgages backed by the FHA increased to 3.81 percent from 3.80
percent, with points decreasing to 0.45 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective
rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.29 percent from 3.31 percent, with points
decreasing to 0.32 from 0.41 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year fixed interest
rate recorded in the history of the survey. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.83 percent from 2.87 percent, with points increasing to 0.36
from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mortgagebankers.org/WeeklyApps, contact mbaresearch@mortgagebankers.org or click here.
The survey covers over 75 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.