MBA Reports Increased Applications, New Categories of Data

ThernMortgage Bankers Association (MBA) reported this morning that mortgage applications rose slightly during the week ended September 16.  The change was driven by increasedrnapplications for refinancing which offset a drop in purchase mortgagernapplications.</p

Thernseasonally adjusted Market Composite Index, a measure of application volume,rnincreased 0.6 percent from the week ended September 9.  On an unadjusted basis the Index rose 25.2rnpercent, over the previous week which was shortened by the Labor Day holiday.  The four-week moving average for thernseasonally adjusted Market Index was down 3.15 percent.</p

ThernRefinance Index increased 2.2 percent but its four-week moving average lostrn3.91 percent.  The Purchase Index droppedrn4.7 percent on a seasonally adjusted basis and 17.1 percent unadjusted comparedrnto the previous four-day holiday week. rnThe seasonally adjusted moving average was down 0.54 percent.</p

Refinancing constituted 78.3 percent of totalrnmortgage applications during the week, up from 76.8 percent and adjustable-raternmortgages (ARMs) had a share of 6.7 percent compared to 7.3 percent a weekrnearlier.   </p

MBArnreported that during the month of August, the investor share of purchasernmortgage applications was at 5.7 percent, a slight increase from 5.5rnpercent in July. This change was led by an increase in the Pacific region. In addition, the share of purchasernmortgages for second homes increased to 6.0 percentrnin August from 5.9 percent in July.</p

Thernaverage interest rate for 30-year fixed-rate mortgages (FRM) was unchanged fromrnthe previous week at 4.29 percent while points, including the origination fee,rnincreased from 0.38 point to 0.41 point. rnThe effective rate for these loans increased.  The average contract rate for 15-year FRMrndecreased from 3.52 percent to 3.46 percent with points increasing to 0.45 fromrn0.38; the effective rate also decreased. rnInterest rates quoted for both the 15-year and 30-year FRM are for loansrnwith conforming loan balances of $417,500 or less.</p

Thernaverage contract interest rate for 30-year fixed-rate mortgages designated as jumbornloans, i.e. with balances over $417,500, decreasedrnto 4.55 percent from 4.57 percent, withrnpoints increasing to 0.46 from 0.42. Therneffective rate increased from the previousrnweek. </p

Thernaverage rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.07 percent from 4.08 percent, withrnpoints increasing to 0.51 from 0.48.  The effective rate increased from last week. </p

Thernrate for 5/1 ARMs decreased torn2.96 percent from 2.99 percent, with points increasingrnto 0.49 from 0.46; the effective rate increased from the previous week. All interest rate information is for 80 percentrnloan-to-value (LTV) ratio loans.</p

MBArnalso announced that their weekly report will reflect an enhanced surveyrnsample which now covers more than 75 percent of all retail and consumer directrnchannel mortgage applications compared to 50 percent in earlier surveys.  This change in sample size has been analyzedrnin parallel with data from the old sample since January to ensurerncomparability.  As is apparent from thernreport this week, the new survey also gathers data on FHA, Jumbo, and 5/1rnHybrid ARM loans.</p

Purchase Index vs 30 Yr Fixed</b</p