Washington, DC, December 6, 2006--The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending December 1. The Market Composite Index, a measure of mortgage loan application volume, was 647.6, an increase of 8.1 percent on a seasonally adjusted basis from 599 one week earlier.
On an unadjusted basis, the Index increased 52 percent compared with the previous week and was up 1.9 percent compared with the same week one year earlier.
The seasonally adjusted Refinance Index increased by 13.7 percent to 1989.7 from 1749.6 the previous week and the Purchase Index increased by 4.9 percent to 426.6 from 406.7 one week earlier. The seasonally adjusted Conventional Index increased by 8.6 percent to 964.7 from 888.6 the previous week, and the seasonally adjusted Government Index increased 2.5 percent to 119 from 116.1 the previous week. Application volume this week is back up to the level observed two weeks before Thanksgiving.
The four week moving average for the seasonally adjusted Market Index is up 1.1 percent to 629.4 from 622.8. The four week moving average is up 1.5 percent to 411.9 from 405.8 for the Purchase Index, while this average is up 1.2 percent to 1924.2 from 1901.3 for the Refinance Index.
The refinance share of mortgage activity increased to 50.1 percent of total applications from 46.9 percent the previous week. The refinance share is at its highest level since April 2004. The adjustable-rate mortgage (ARM) share of activity decreased to 23.9 from 24.5 percent of total applications from the previous week. The ARM share is at its lowest level since October 2003.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.98 from 6.13 percent, with points decreasing to 0.91 from 0.97 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30 year rate is at its lowest level since October 2005.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.66 percent from 5.86 percent, with points increasing to 1.01 from 0.87 (including the origination fee) for 80 percent LTV loans. The 15 year rate is at its lowest level since January 2006.
The average contract interest rate for one-year ARMs decreased to 5.79 percent from 5.87, with points decreasing to 0.77 from 0.81 (including the origination fee) for 80 percent LTV loans. The one year rate is at its lowest level since March 2006.
