Mortgage Application Volume Drops
Washington, DC, April 13, 2006--The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 7.
The Market Composite Index, a measure of mortgage loan application volume, was 579.4, a decrease of 5.5 percent on a seasonally adjusted basis from 612.8 one week earlier. On an unadjusted basis, the Index decreased 5.1 percent compared with the previous week and was down 14.7 percent compared with the same week one year earlier.
The seasonally-adjusted Purchase Index decreased by 4.7 percent to 417.7 from 438.2 the previous week whereas the Refinance Index decreased by 6.6 percent to 1532.4 from 1640.8 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which decreased 5.0 percent to 854.9 from 900.3 the previous week, and the Government Index, which decreased 10.2 percent to 120.0 from 133.6 the previous week.
The four week moving average for the seasonally-adjusted Market Index is up 0.2 percent to 582.2 from 581.0. The four week moving average is up 0.9 percent to 413.4 from 409.7 for the Purchase Index while this average is down 0.8 percent to 1576.5 from 1589.3 for the Refinance Index.
The refinance share of mortgage activity decreased to 36.0 percent of total applications from 36.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 28.6 percent of total applications from 28.5 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.50 percent from 6.49 percent, with points increasing to 1.20 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 6.17 percent from 6.15 percent, with points increasing to 1.16 from 1.12 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 5.97 percent from 5.96 percent, with points remaining at 0.84 (including the origination fee) for 80 percent LTV loans.