Washington, DC, June 28, 2006--The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 23. The Market Composite Index, a measure of mortgage loan application volume, was 529.6, a decrease of 6.7 percent on a seasonally adjusted basis from 567.6 one week earlier. On an unadjusted basis, the Index decreased 7.0 percent compared with the previous week but was down 31.0 percent compared with the same week one year earlier.
The seasonally-adjusted Purchase Index decreased by 6.2 percent to 389.0 from 414.8 the previous week and the Refinance Index decreased by 7.5 percent to 1356.0 from 1466.1 one week earlier. Other seasonally adjusted index activity includes the Conventional Index, which decreased 6.6 percent to 781.1 from 836.0 the previous week, and the Government Index, which decreased 8.1 percent to 110.3 from 120.0 the previous week.
The four week moving average for the seasonally-adjusted Market Index is down 0.6 percent to 550.9 from 554.0. The four week moving average is down 0.4 percent to 403.5 from 405.1 for the Purchase Index, while this average is down 0.9 percent to 1419.4 from 1432.6 for the Refinance Index.
The refinance share of mortgage activity decreased to 35.3 percent of total applications from 35.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.1 percent of total applications from 29.6 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.86 percent from 6.73 percent, with points decreasing to 1.10 from 1.14 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the highest reported 30-year average rate since April 2002.
The average contract interest rate for 15-year fixed-rate mortgages increased to 6.49 percent from 6.37 percent, with points decreasing to 1.04 from 1.10 (including the origination fee) for 80 percent LTV loans. This is the highest that the 15-year rate has been since April 2002.
The average contract interest rate for one-year ARMs increased to 6.36 percent from 6.22 percent, with points increasing to 0.87 from 0.86 (including the origination fee) for 80 percent LTV loans. This is the highest that the one year rate has been since February 2001.
