|Title: ||Mortgage Purchase Applications Increase in Latest MBA Weekly Survey|
WASHINGTON, D.C. (November 24, 2010) â€” The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending November
19, 2010. The Market Composite Index, a measure of mortgage loan application volume, increased 2.1 percent on a seasonally
adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.1 percent compared with the previous
The Refinance Index decreased 1.0 percent from the previous week and is the lowest Refinance Index observed since the end
of June. The seasonally adjusted Purchase Index increased 14.4 percent from one week earlier, which included Veterans Day.
No adjustment was made for the holiday. On a seasonally adjusted basis, this is the highest Purchase Index recorded since
the week ending May 7, 2010. The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was 7.4
percent lower than the same week one year ago.
â€œThe increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat
more confident with their financial situation,â€ said Michael Fratantoni, MBAâ€™s Vice President of Research and Economics.
â€œWhile the increase was magnified somewhat by the comparison to the holiday week, the level of purchase applications on
a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit.â€
The four week moving average for the seasonally adjusted Market Index is down 3.2 percent. The four week moving average is
up 4.0 percent for the seasonally adjusted Purchase Index, while this average is down 4.8 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 78.6 percent of total applications from 80.3 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity remained constant at 5.3 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.50 percent from 4.46 percent, with points
decreasing to 0.88 from 1.12 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the
highest 30-year fixed rate observed in the survey since the week ending September 3, 2010. The effective rate decreased
from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.83 percent from 3.87 percent, with points
increasing to 1.04 from 0.91 (including the origination fee) for 80 percent LTV loans. The effective rate was unchanged from
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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
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.