Mortgage Application Volume Declines in Latest Sur

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Mortgage Application Volume Declines in Latest Sur
Washington, DC, May 31, 2006--The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 26. The Market Composite Index, a measure of mortgage loan application volume, was 541.9, a decrease of 1.9 percent on a seasonally adjusted basis from 552.6 one week earlier. On an unadjusted basis, the Index decreased 2.6 percent compared with the previous week and was down 22.4 percent compared with the same week one year earlier. The seasonally-adjusted Purchase Index decreased by 0.2 percent to 395.5 from 396.4 the previous week whereas the Refinance Index decreased by 4.8 percent to 1409.0 from 1480.5 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which decreased 2.3 percent to 799.7 from 818.2 the previous week, and the Government Index, which increased 1.9 percent to 111.9 from 109.8 the previous week. The four week moving average for the seasonally-adjusted Market Index is down 2.4 percent to 561.2 from 574.9. The four week moving average is down 2.3 percent to 408.8 from 418.2 for the Purchase Index, while this average is down 2.6 percent to 1465.9 from 1505.1 for the Refinance Index. The refinance share of mortgage activity decreased to 34.9 percent of total applications from 35.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 30.7 percent of total applications from 30.5 percent the previous week. The ARM share is at its highest since 1/27/2006. The average contract interest rate for 30-year fixed-rate mortgages increased to 6.66 percent from 6.61 percent, with points decreasing to 1.03 from 1.17 (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 6.22 percent from 6.23 percent, with points increasing to 1.18 from 1.16 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs increased to 6.09 percent from 6.02 percent, with points decreasing to 0.83 from 0.87 (including the origination fee) for 80 percent LTV loans.