Strong Refinance Activity Continues Unabated in Latest MBA Weekly Survey

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(News Source: Mortgage Bankers Association)

(WASHINGTON, D.C.) -- The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 27, 2009.  The Market Composite Index, a measure of mortgage loan application volume, was 1194.4, an increase of 3.0 percent on a seasonally adjusted basis from 1159.4 one week earlier.  On an unadjusted basis, the Index increased 2.9 percent compared with the previous week and 68.8 percent compared with the same week one year earlier.
 
The Refinance Index increased 3.7 percent to 6600.1 from 6363.2 the previous week and the seasonally adjusted Purchase Index increased 0.1 percent to 268.0 from 267.8 one week earlier.  The Conventional Purchase Index increased 1.0 percent while the Government Purchase Index (largely FHA) decreased 1.4 percent.
 
The four week moving average for the seasonally adjusted Market Index is up 16.0 percent.  The four week moving average is up 3.1 percent for the seasonally adjusted Purchase Index, while this average is up 20.3 percent for the Refinance Index.
 
The refinance share of mortgage activity increased to 79.1 percent of total applications from 78.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 1.5 percent from 1.4 percent of total applications from the previous week.
 
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.61 percent from 4.63 percent, with points decreasing to 1.03 from 1.13 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The contract rate is a new record low for the survey, which began in 1990. 
 
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.45 percent from 4.48 percent, with points decreasing to 1.04 from 1.07 (including the origination fee) for 80 percent LTV loans.
 
The average contract interest rate for one-year ARMs decreased to 6.20 percent from 6.22 percent, with points decreasing to 0.14 from 0.15 (including the origination fee) for 80 percent LTV loans.

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