EconoIndicators

Mortgage Applications Survey At a Glance

• Market Composite Index: 615.2
• Change: Down 4.0%
• Purchase Index: 424
• Change: Down 4%
• Refinance Index: 1729.6
• Change: Down 4.2%
• 4-Week Moving Average: Up 0.3%%
• 30-year Fixed Rate: 6.41% with 1.48 points

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Mortgage Applications Decrease in Latest MBA Weekly Survey

WASHINGTON, D.C. (August 29, 2007) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 24, 2007. The Market Composite Index, a measure of mortgage loan application volume, was 615.2, a decrease of 4.0 percent on a seasonally adjusted basis from 641.1 one week earlier. On an unadjusted basis, the Index decreased 5.3 percent compared with the previous week and was up 10.6 percent compared with the same week one year earlier.

The Refinance Index decreased 4.2 percent to 1729.6 from 1806.3 the previous week and the seasonally adjusted Purchase Index decreased 4.0 percent to 424.0 from 441.5 one week earlier. On an unadjusted basis, the Purchase Index decreased 6.0 percent to 439.5 from 467.5 the previous week. The seasonally adjusted Conventional Index decreased 4.5 percent to 890.5 from 932.0 the previous week, and the seasonally adjusted Government Index increased 0.1 percent to 156.1 from 156.0 the previous week.

The four week moving average for the seasonally adjusted Market Index is up 0.3 percent to 647.9 from 645.8. The four week moving average is up 0.4 percent to 444.4 from 442.6 for the Purchase Index, while this average is up 0.1 percent to 1836.6 from 1835.3 for the Refinance Index.

The refinance share of mortgage activity increased to 40.4 percent of total applications from 39.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 15.0 from 18.6 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.41 percent from 6.49 percent, with points remaining unchanged at 1.48 (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 6.10 from 6.20 percent, with points increasing to 1.19 from 1.10 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.51 from 5.84 percent, with points decreasing to 1.00 from 1.05 (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association