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Mortgage Applications Decrease in Latest MBA Weekly Survey

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RISMedia, June 10, 2011—Mortgage applications decreased 0.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 3, 2011. This week’s results include an adjustment to account for the Memorial Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 11 percent compared with the previous week. The seasonally adjusted Purchase Index decreased 4.4 percent from one week earlier. The unadjusted Purchase Index decreased 15.2 percent compared with the previous week and was 9.0 percent higher than the same week one year ago. The adjusted Refinance Index increased 1.3 percent from the previous week. The Refinance Index is not seasonally adjusted but is adjusted for the holiday.

The four week moving average for the seasonally adjusted Market Index is up 1.0 percent. The four week moving average is down 1.6 percent for the seasonally adjusted Purchase Index, while this average is up 2.1 percent for the Refinance Index.

The refinance share of mortgage activity increased to 67.3 percent of total applications from 65.7 percent the previous week. This is the highest refinance share since January 28, 2011. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent from 6.2 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.54 percent from 4.58 percent, with points decreasing to 0.95 from 1.00 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year contract rate since November 19, 2010. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.67 percent from 3.78 percent, with points decreasing to 1.06 from 1.07 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year contract rate since October 22, 2010. The effective rate also decreased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please contact mbaresearch@mortgagebankers.org.

The survey covers over 50 percent 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.

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

For additional information, please visit www.mortgagebankers.org.

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