Housing Bubble

Refinance Index over 5000 for 21st consecutive week

May 28, 2003

Washington, D.C. - The Market Composite Index of mortgage loan applications - a measure of mortgage loan applications for purchases and refinancings - for the week ending May 23 increased to 1634.6 on a seasonally-adjusted basis from 1562.8 one week earlier, 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 by 4.3 percent and was up 202.4 percent compared to the same week a year earlier.

The MBA seasonally adjusted Purchase Index decreased by less than one percent to 395.7 from 395.8 the previous week. The seasonally adjusted Refinance Index increased to 8840.9 from 8351.1 one week earlier. Other seasonally adjusted index activity included the Conventional Index, which increased to 2411.6 from 2313.5 the previous week. The Government Index increased to 338.0 from 310.2 the previous week.

Refinancing activity increased to 77.1 percent of total applications from 76.0 percent the previous week. The share of ARM activity increased to 13.4 percent from 12.5 percent the previous week.

The average contract interest rate for 30-year fixed rate mortgages decreased to a record low of 5.14 percent from the previous record low of 5.17 percent one week earlier, with points decreasing to 1.29 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 15-year fixed rate mortgages increased slightly to 4.62 percent from the record low of 4.61 percent one week earlier, with points increasing to 1.42 from 1.35 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

Source: Mortgage Bankers Association of America (MBA)