The seasonally adjusted Refinance Index decreased by 14.6 percent to 1968.8 from 2304.4 the previous week and the Purchase Index decreased by 5.9 percent to 436.5 from 463.8 one week earlier. The seasonally adjusted Conventional Index decreased by 10.7 percent to 963.9 from 1079.4 the previous week, and the seasonally adjusted Government Index decreased 3.1 percent to 120.3 from 124.1 the previous week.
 
The four week moving average for the seasonally adjusted Market Index is up 0.9 percent to 653.9 from 647.9.  The four week moving average is up 2.1 percent to 433.4 from 424.6 for the Purchase Index, while this average is up 0.4 percent to 2003.1 from 1994.8 for the Refinance Index.

The refinance share of mortgage activity decreased to 50.8 percent of total applications from 52.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 23.6 from 24.9 percent of total applications from the previous week. The ARM share is at its lowest level since October 2003.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.10 from 6.02 percent, with points decreasing to 0.93 from 1 (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 5.82 percent from 5.75 percent, with points decreasing to 0.99 from 1 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 5.82 percent from 5.76, with points increasing to 0.83 from 0.81 (including the origination fee) for 80 percent LTV loans.

**SPECIAL NOTES**

The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, 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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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.