RISMEDIA, Oct. 23, 2008-The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending October 17, 2008. This week’s results include an adjustment to account for the Columbus Day holiday. The Market Composite Index, a measure of mortgage loan application volume, was 408.1, a decrease of 16.6% on a seasonally adjusted basis from 489.3 one week earlier. On an unadjusted basis, the Index decreased 25% compared with the previous week and was down 44% compared with the same week one year earlier.
The Refinance Index decreased 23.5% to 1158.8 from the previous week and the seasonally adjusted Purchase Index decreased 10.9% to 279.3 from one week earlier. The Conventional Purchase Index decreased 10.5% while the Government Purchase Index (largely FHA) decreased 11.9%.
The four week moving average for the seasonally adjusted Market Index is down 9.2%. The four week moving average for the seasonally adjusted Purchase Index is down 4.9%, while this average is down 14.2% for the Refinance Index.
The refinance share of mortgage activity decreased to 42.6% of total applications from 46.4% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 2.7% from 2.6% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.28% from 6.47%, with points decreasing to 1.09 from 1.14 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.05% from 6.17%, with points decreasing to 1.11 from 1.18 (including the origination fee) for 80% LTV loans.
The average contract interest rate for one-year ARMs increased to 6.97% from 6.67%, with points decreasing to 0.40 from 0.43 (including the origination fee) for 80% LTV loans.
The survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
For more information, visit www.mortgagebankers.org.
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