Housing Bubble
Mortgage Applications Fall in Latest MBA Survey
The Market Composite Index of mortgage loan applications -- a measure of mortgage loan applications for purchases and refinancings -- for the week ending December 6 decreased 8.1 percent to 862.7 on a seasonally-adjusted basis from 939.0 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 29.5 percent and was up 26.6 percent compared to the same week a year earlier.
The MBA seasonally adjusted Purchase Index decreased to 358.8 from 386.6 the previous week. The seasonally adjusted Refinance Index decreased to 3793.8 from 4151.9 the previous week. Other seasonally adjusted index activity included the Conventional Index, which decreased to 1237.5 from 1318.8 the previous week. The Government Index decreased to 237.2 from 305.1 the previous week.
Refinancing activity represented 70.0 percent of total applications, increasing from 69.5 percent the previous week. The share of ARM activity increased to 14.4 percent from 14.0 percent the previous week.
The average contract interest rate for 30-year fixed rate mortgages decreased to 5.95 percent from 6.09 percent the previous week, with points decreasing to 1.42 from 1.51 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed rate mortgages decreased to 5.34 percent from 5.49 percent the previous week, with points decreasing to 1.30 from 1.40 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 1-year ARMs was 3.79 percent, decreasing from 3.94 percent the previous week, with points decreasing to 1.07 from 1.10 the previous week (including the origination fee) for 80 percent LTV loans.
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