Mortgage MarketWatch: Purchase Applications Hold Steady, Refinance Applications Fall in Latest Mortgage Bankers Association Weekly Survey

Weekly Mortgage Bankers Association application statistics indicates average 30-year fixed rate hovering around 5.36 percent.

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 24, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 495.4, a decrease of 6.3 percent on a seasonally adjusted basis from 528.9 one week earlier. On an unadjusted basis, the Index decreased 6.0 percent compared with the previous week and increased 16.1 percent compared with the same week one year earlier.

The Refinance Index decreased 10.9 percent to 1862.1 from 2089.7 the previous week and the seasonally adjusted Purchase Index remained unchanged from one week earlier at 262.0.

The four week moving average for the seasonally adjusted Market Index is up 2.6 percent. The four week moving average is down 0.5 percent for the seasonally adjusted Purchase Index, while this average is up 5.2 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 52.6 percent of total applications from 55.5 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.5 percent from 4.8 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.36 percent from 5.31 percent, with points decreasing to 0.93 from 1.18 (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 4.75 percent from 4.80 percent, with points increasing to 1.14 from 1.03 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.66 percent from 6.50 percent, with points decreasing to 0.09 from 0.11 (including the origination fee) for 80 percent LTV loans.

**SPECIAL NOTES**

Beginning August 5, the index values will not be included in MBA's Weekly Applications Survey press release, only the percentage changes. If you would like to subscribe to MBA's Weekly Applications Survey, please contact MBA Research at (202) 557-2830 or mbaresearch@mortgagebankers.org or click here.

Media inquiries should be directed to Carolyn Kemp at (202) 557-2727 or ckemp@mortgagebankers.org.

The survey covers over 50 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

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