Loan Applications Barely Budge as Mortgage Rates Hit New Low

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 6, 2010. </p

The Market Composite Index, a measure of mortgage loan application volume, increased 0.6 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 0.4 percent compared with the previous week.  The four week moving average for the seasonally adjusted Market Index is up 1.2 percent.

The Refinance Index increased 0.6 percent from the previous week.  The four week moving average is up 1.0 percent for the Refinance Index. The refinance share of mortgage activity increased to 78.1 percent of total applications from 78.0 percent the previous week.</p

</p

The seasonally adjusted Purchase Index increased 0.3 percent from onern week earlier. The unadjusted Purchase Index decreased 0.3 percent compared with the previous week and was 34.1 percent lower than the samern week one year ago.
 The four week moving average is up 1.8 percent for the seasonally adjusted Purchase Index.</p

Thern average contract interest rate for 30-year fixed-rate mortgages decreased to 4.57 percent from 4.60 percent, with points decreasing to 0.89 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  This was the lowest 30-year contract rate ever recorded in the survey. The effective rate also decreased fromrn last week.

 The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.95 percent from 4.03 percent, with points increasing to 1.08 from 1.01 (including the origination fee) for 80 percent LTV loans. This was the lowest 15-year contract rate ever recorded in the survey. The effective rate also decreased from last week.

 The average contract interest rate for one-year ARMs decreased to 7.00 percent from 7.10 percent, with points increasing to 0.22 from 0.21 (including the origination fee) for 80 percent LTV loans.  The adjustable-rate mortgage (ARM) share of activity increased to 5.9 percent from 5.4 percent of total applications from the previous week.</p

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.