The Refinance Index increased 2.3 percent to 1770.2 from 1729.6 the previous week and the seasonally adjusted Purchase Index increased 0.4 percent to 425.8 from 424.0 one week earlier.  On an unadjusted basis, the Purchase Index decreased 1.9 percent to 431.1 from 439.5 the previous week.  The seasonally adjusted Conventional Index increased 0.3 percent to 893.1 from 890.5 the previous week, and the seasonally adjusted Government Index increased 10.4 percent to 172.3 from 156.1 the previous week.
 
The four week moving average for the seasonally adjusted Market Index is down 1.3 percent to 639.5 from 647.9.  The four week moving average is down 1.2 percent to 439.0 from 444.4 for the Purchase Index, while this average is down 1.5 percent to 1808.9 from 1836.6 for the Refinance Index.

The refinance share of mortgage activity increased to 41.4 percent of total applications from 40.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 12.6 from 15.0 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.42 percent from 6.41 percent, with points decreasing to 1.09 from 1.48 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.10 percent, with points decreasing to 1.16 from 1.19 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.52 from 6.51 percent, with points decreasing to 0.93 from 1.00 (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 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.