|Title: ||Mortgage Applications Increase In Latest MBA Weekly Survey|
WASHINGTON, D.C. (October 15, 2008) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October
10, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 489.3, an increase of 5.1 percent
on a seasonally adjusted basis from 465.5 one week earlier. On an unadjusted basis, the Index increased 5.4 percent compared
with the previous week and was down 17.0 percent compared with the same week one year earlier.
"Treasury yields were extremely volatile last week. The yield on the 10-year Treasury note -- the benchmark for 30-year fixed
mortgage rate -- moved up about 40 basis points over the course of the week," said Orawin Velz, MBA's Associate Vice President
of Economic Forecasting. "Lower yields earlier in the week appeared to have spurred refinance activity, which then faded
as the week went on and rates began to rise."
The Refinance Index increased 12.5 percent to 1514.2 from the previous week and the seasonally adjusted Purchase Index decreased
0.3 percent to 313.5 from one week earlier. The Conventional Purchase Index increased 0.4 percent while the Government Purchase
Index (largely FHA) decreased 2.1 percent.
The four week moving average for the seasonally adjusted Market Index is down 7.9 percent. The four week moving average for
the seasonally adjusted Purchase Index is down 5.0 percent, while this average is down 11.2 percent for the Refinance Index.
The refinance share of mortgage activity increased to 46.4 percent of total applications from 43.4 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 2.6 percent from 2.3 percent of total applications from
the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.47 percent from 5.99 percent, with points increasing to 1.14 from 1.09 (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 6.17 percent from 5.71 percent, with points increasing to 1.18 from 1.16 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 6.67 percent from 6.60 percent, with points increasing to 0.43 from 0.37 (including the origination fee) for 80 percent LTV loans.
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.
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.