Applications Decrease in Latest MBA Survey

Washington, DC, February 21, 2007--The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 16, 2007.  The Market Composite Index, a measure of mortgage loan application volume, was 606.6, a decrease of 5.2 percent on a seasonally adjusted basis from 639.8 one week earlier. 

On an unadjusted basis, the Index decreased 2.9 percent compared with the previous week and was up 4.1 percent compared with the same week one year earlier.

The Refinance Index decreased 5.4 percent to 1921.1 from 2031.7 the previous week and the seasonally adjusted Purchase Index decreased 4.8 percent to 381.4 from 400.7 one week earlier. The seasonally adjusted Conventional Index decreased 4.8 percent to 908.2 from 954.3 the previous week, and the seasonally adjusted Government Index decreased 10.1 percent to 103.7 from 115.4 the previous week.

The four week moving average for the seasonally adjusted Market Index is down 0.2 percent to 626.9 from 628.1.  The four week moving average is down 1.3 percent to 398.7 from 404 for the Purchase Index, while this average is up 0.9 percent to 1959.1 from 1941 for the Refinance Index.

The refinance share of mortgage activity decreased to 44.9 percent of total applications from 46.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 21.2 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.19 percent from 6.24 percent, with points decreasing to 0.88 from 1.06 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.88 from 5.94 percent, with points decreasing to 1.03 from 1.13 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 5.81 from 5.8 percent, with points increasing to 0.88 from 0.84 (including the origination fee) for 80 percent LTV loans.