Low Rates Boost Refinance Activity 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 13, 2009.  The Market Composite Index, a measure of mortgage loan application volume, was 876.9, an increase of 21.2 percent on a seasonally adjusted basis from 723.4 one week earlier.  On an unadjusted basis, the Index increased 20.7 percent compared with the previous week and 31.2 percent compared with the same week one year earlier.
 
The Refinance Index increased 29.6 percent to 4497.6 from 3470.7 the previous week and the seasonally adjusted Purchase Index increased 1.5 percent to 257.1 from 253.3 one week earlier.  The Conventional Purchase Index increased 2.1 percent while the Government Purchase Index (largely FHA) increased 0.4 percent.
 
The four week moving average for the seasonally adjusted Market Index is up 0.1 percent. The four week moving average is unchanged for the seasonally adjusted Purchase Index, while this average is up 0.2 percent for the Refinance Index.
 
The refinance share of mortgage activity increased to 72.9 percent of total applications from 67.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 2.0 percent from 2.3 percent of total applications from the previous week.
 
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.89 percent from 4.96 percent, with points increasing to 1.23 from 1.16 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The contract rate ties the survey's record low reached in January 2009.
 
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.52 percent from 4.54 percent, with points decreasing to 1.18 from 1.20 (including the origination fee) for 80 percent LTV loans.
 
The average contract interest rate for one-year ARMs decreased to 6.20 percent from 6.21 percent, with points decreasing to 0.14 from 0.16 (including the origination fee) for 80 percent LTV loans.

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