Mortgage Apps Decrease Last Week

Washington, DC, October 3, 2007—Mortgage loan application volume fell 2.7% the week ending September 28, according to the weekly Mortgage Bankers Association (MBA) survey.

The Refinance Index decreased 3.8% from the previous week and the seasonally adjusted Purchase Index decreased 1.8%.

The refinance share of mortgage activity decreased to 46% of total applications from 46.4% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 13.8% from 12.2% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.32% from 6.38%, with points decreasing to 1.08 from 1.15 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.95% from 6.06%, with points decreasing to 1.07 from 1.12 (including the origination fee) for 80% LTV loans.

The average contract interest rate for one-year adjustable mortgages increased to 6.21% from 6.09%, with points decreasing to 0.89 from 0.93 (including the origination fee) for 80% LTV loans.