The Refinance Index decreased 5.0 percent to 2199.9 from 2315.7 the previous week and the seasonally adjusted Purchase Index decreased 2.0 percent to 424.1 from 432.6 one week earlier.  On an unadjusted basis, the Purchase Index decreased 5.5 percent to 373.7 from 395.4 the previous week.  The seasonally adjusted Conventional Index decreased 3.9 percent to 977.4 from 1017.0 the previous week, and the seasonally adjusted Government Index decreased 1.1 percent to 188.7 from 190.8 the previous week.
 
The four week moving average for the seasonally adjusted Market Index is up 0.9 percent to 685.3 from 679.0.  The four week moving average is up 0.5 percent to 420.6 from 418.5 for the Purchase Index, while this average is up 1.6 percent to 2235.2 from 2200.0 for the Refinance Index.

The refinance share of mortgage activity increased to 50.3 percent of total applications from 50.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 15.8 from 15.5 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.18 percent from 6.19 percent, with points decreasing to 1.01 from 1.16 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.71 from 5.77 percent, with points decreasing to 1.12 from 1.13 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs remained unchanged at 5.98 percent, with points decreasing to 0.89 from 0.93 (including the origination fee) for 80 percent LTV loans.

**SPECIAL NOTES**

The survey covers approximately 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 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.