Housing Bubble

Mortgage applications remain strong, refinancing falls in latest MBA survey

February 05, 2003

The Market Composite Index of mortgage loan applications -- a measure of mortgage loan applications for purchases and refinancings -- for the week ending January 31 decreased 2.5 percent to 1141.4 on a seasonally adjusted basis, from 1171.2 the previous week, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. On an unadjusted basis, the Index increased 10.0 percent but was up 101.7 percent compared with the same week a year earlier.

The MBA seasonally adjusted Purchase Index increased to 371.1 from 365.5 the previous week. The seasonally adjusted Refinance Index decreased to 5621.6 from 5858.1 the previous week. Other seasonally adjusted index activity included the Conventional Index, which decreased to 1642.6 from 1697.3 the previous week. The Government Index increased to 304.9 from 293.4 the previous week.

Refinancing activity represented 73.1 percent of total applications, decreasing from 75.4 percent the previous week. The share of ARM activity increased to 13.9 percent from 13.2 percent the previous week.

Source: Mortgage Bankers Association of America (MBA)