MBA: 30-year Fixed Rate Increases to Highest Level Since July 2002

The Mortgage Bankers Association (MBA) reports that the 30-year fixed rate mortgage increased to the highest level since July 2002. Mortgage application volume was steady for the week ending March 10th.

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The Market Composite Index — a measure of mortgage loan application volume was 574.4 – a decrease of 0.2 percent on a seasonally adjusted basis from 575.6 one week earlier. On an unadjusted basis, the Index increased 0.2 percent compared with the previous week but was down 20.4 percent compared with the same week one year earlier.

The seasonally-adjusted Purchase Index increased by 1.0 percent to 403.0 from 399.0 the previous week whereas the Refinance Index decreased by 1.9 percent to 1583.6 from 1614.4 one week earlier.

Mortgage rates increased:

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.42 percent from 6.31 percent...

The average contract interest rate for one-year ARMs decreased to 5.64 percent from 5.69 percent ..

Change in mortgage applications from one year ago (from Dow Jones):

Total	-20.4%
Purchase	-13.1%
Refi	-30.2
Fixed-Rate	-16.1%
ARM	-29.3%

Purchase activity is off 13% from the same week in 2005 and overall mortgage activity is off 20%. Those are significant declines in activity.