The seasonally-adjusted Purchase Index increased slightly to 395.6 from 395.5 the previous week whereas the Refinance Index decreased by 3.8 percent to 1356.0 from 1409.0 one week earlier. Other than a brief dip in December 2005, the Refinance Index is at its lowest level since April 2002. Other seasonally adjusted index activity includes the Conventional Index, which decreased 1.5 percent to 788.1 from 799.7 the previous week, and the Government Index, which decreased 0.4 percent to 111.5 from 111.9 the previous week.
 
The four week moving average for the seasonally-adjusted Market Index is down 1.2 percent to 554.2 from 561.2.  The four week moving average is down 1.3 percent to 403.6 from 408.8 for the Purchase Index, while this average is down 1.2 percent to 1448.1 from 1465.9 for the Refinance Index.

The refinance share of mortgage activity decreased to 34.2 percent of total applications from 34.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.4 percent of total applications from 30.7 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.60 percent from 6.66 percent, with points increasing to 1.19 from 1.03 (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 to 6.23 percent from 6.22 percent, with points decreasing to 1.16 from 1.18 (including the origination fee) for 80 percent LTV loans. 

The average contract interest rate for one-year ARMs decreased to 6.05 percent from 6.09 percent, with points increasing to 0.86 from 0.83 (including the origination fee) for 80 percent LTV loans. 

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 370,000 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 2,400 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.