|Title: ||Applications Increase in Latest MBA Weekly Survey|
WASHINGTON, D.C. (January 19, 2011) --The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January
14, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 5.0 percent on a seasonally
adjusted basis from one week earlier. On an unadjusted basis, the Index increased 6.4 percent compared with the previous
The Refinance Index increased 7.7 percent from the previous week. This is the third consecutive weekly increase in refinance
applications and is the highest Refinance Index observed since the beginning of December. The seasonally adjusted Purchase
Index decreased 1.9 percent from one week earlier. The unadjusted Purchase Index increased 3.1 percent compared with the previous
week and was 16.0 percent lower than the same week one year ago.
"Mortgage rates have moved somewhat lower since the beginning of the year, as mixed data on the job market continue to cloud
the outlook for the economy," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Refinance applications
have picked up, as borrowers take advantage of lower rates, but purchase applications remain quite low, indicating that home
sales are unlikely to pick up any time soon."
The four week moving average for the seasonally adjusted Market Index is up 1.4 percent. The four week moving average is
down 0.8 percent for the seasonally adjusted Purchase Index, while this average is up 2.3 percent for the Refinance Index.
The refinance share of mortgage activity increased to 73.0 percent of total applications from 72.1 percent the previous week.
This is the highest refinance share observed since the week ending December 10, 2010. The adjustable-rate mortgage (ARM) share
of activity increased to 5.0 percent from 4.9 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.77 percent from 4.78 percent, with points
increasing to 1.20 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective
rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.16 percent from 4.15 percent, with points
decreasing to 0.90 from 1.01 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased 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.mba.org.