Mortgage Applications Down This Week, Says MBA

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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 September 25, 2009.  The Market Composite Index, a measure of mortgage loan application volume, decreased 2.8 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 3.1 percent compared with the previous week and 44.3 percent compared with the same week one year earlier.

The Refinance Index decreased 0.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 6.2 percent from one week earlier. The unadjusted Purchase Index decreased 6.9 percent compared with the previous week and was 10.6 percent lower than the same period one year ago.

The four week moving average for the seasonally adjusted Market Index is up 3.9 percent.  The four week moving average is down 0.6 percent for the seasonally adjusted Purchase Index, while this average is up 6.8 percent for the Refinance Index.

The refinance share of mortgage activity increased to 65.3 percent of total applications from 63.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.2 percent from 6.7 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.94 percent from 4.97 percent, with points decreasing to 0.94 from 1.12 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.34 percent from 4.41 percent, with points decreasing to 1.01 from 1.05 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year fixed-rate ever recorded in the survey.

The average contract interest rate for one-year ARMs decreased to 6.40 percent from 6.52 percent, with points increasing to 0.29 from 0.28 (including the origination fee) for 80 percent LTV loans.

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