Wednesday, April 12, 2006

MBA: Mortgage Application Volume Drops

by Bill McBride on 4/12/2006 09:35:00 AM

The Mortgage Bankers Association (MBA) reports: Mortgage Application Volume Drops in Latest Survey

Click on graph for larger image.

The Market Composite Index, a measure of mortgage loan application volume, was 579.4, a decrease of 5.5 percent on a seasonally adjusted basis from 612.8 one week earlier. On an unadjusted basis, the Index decreased 5.1 percent compared with the previous week and was down 14.7 percent compared with the same week one year earlier.

The seasonally-adjusted Purchase Index decreased by 4.7 percent to 417.7 from 438.2 the previous week whereas the Refinance Index decreased by 6.6 percent to 1532.4 from 1640.8 one week earlier.
Mortgage rates increased slightly:
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.50 percent from 6.49 percent ...

The average contract interest rate for one-year ARMs increased to 5.97 percent from 5.96 percent ...
Change in mortgage applications from one year ago (from Dow Jones):


Purchase activity is off 11.9% from last year. This provides further evidence that housing is slowing.