Wednesday, January 03, 2007

MBA: Mortgage Applications Increase

by Bill McBride on 1/03/2007 01:19:00 AM

The Mortgage Bankers Association (MBA) reports: Mortgage Applications Increase

Click on graph for larger image.

The Market Composite Index, a measure of mortgage loan application volume, was 575.6, an increase of 3.6 percent on a seasonally adjusted basis from 555.8 one week earlier. On an unadjusted basis, the Index decreased 27.4 percent compared with the previous week and was up 6.9 percent compared with the same week one year earlier.

The Refinance Index increased by 2.2 percent to 1640.4 from 1604.6 the previous week and the seasonally adjusted Purchase Index increased by 4.3 percent to 406.9 from 390.2 one week earlier.
Mortgage rates were mixed:
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.22 from 6.12 percent ...

The average contract interest rate for one-year ARMs decreased to 5.84 percent from 5.87 ...
The second graph shows the Purchase Index and the 4 and 12 week moving averages since January 2002. The four week moving average is down 1.1 percent to 424.4 from 429.3 for the Purchase Index.
The refinance share of mortgage activity decreased to 48.1 percent of total applications from 48.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 20.4 from 23.1 percent of total applications from the previous week. The ARM share is at its lowest level since July 2003.