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Purchase Applications Remain Steady, Refinance Applications Continue to Fall

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RISMEDIA, June 11, 2009-The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending June 5, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 611.0, a decrease of 7.2% on a seasonally adjusted basis from 658.7 one week earlier. On an unadjusted basis, the Index increased 15.7% compared with the previous week and increased 7.6% compared with the same week one year earlier.

The Refinance Index decreased 11.8% to 2605.7 from 2953.6 the previous week and the seasonally adjusted Purchase Index increased 1.1% to 270.7 from 267.7 one week earlier.

The four week moving average for the seasonally adjusted Market Index is down 8.7%. The four week moving average is up 0.5% for the Purchase Index, while this average is down 12.2% for the Refinance Index.

The refinance share of mortgage activity decreased to 59.4% of total applications from 62.4% the previous week. This is the lowest the refinance share has been since November 2008. The adjustable-rate mortgage (ARM) share of activity increased to 3.4% from 3.0% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.57% from 5.25%, with points increasing to 1.09 from 1.02 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.10% from 4.80%, with points decreasing to 1.04 from 1.10 (including the origination fee) for 80% LTV loans.

The average contract interest rate for one-year ARMs increased to 6.75% from 6.61%, with points decreasing to 0.10 from 0.15 (including the origination fee) for 80% LTV loans.

The survey covers more than 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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