|Title: ||Purchase Applications Increase, Refinance Applications Decline in Latest MBA Weekly Survey|
WASHINGTON, D.C. (April 28, 2010) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April
23, 2010. The Market Composite Index, a measure of mortgage loan application volume decreased 2.9 percent on a seasonally
adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.9 percent compared with the previous
The Refinance Index decreased 8.8 percent from the previous week, while the seasonally adjusted Purchase Index increased 7.4
percent from one week earlier and reached its highest level since October 2009. The increase in the purchase index was driven
largely by the government purchase index, which increased 11.9 percent from last week on a seasonally adjusted basis, while
the conventional purchase index increased 3.5 percent from last week. The unadjusted Purchase Index increased 8.5 percent
compared with the previous week and was 2.4 percent higher than the same week one year ago.
“Purchase activity continues to increase as we approach the end of the homebuyer tax credit program,” said Michael Fratantoni,
MBA's Vice President of Research and Economics. “Purchase applications were up almost 9 percent from a month ago, with a
disproportionate share of the increase due to government purchase applications. Government applications for purchasing a home
accounted for almost 49 percent of all purchase applications last week.”
The four week moving average for the seasonally adjusted Market Index is down 3.1 percent. The four week moving average is
up 1.6 percent for the seasonally adjusted Purchase Index, while this average is down 5.8 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 55.7 percent of total applications from 60.0 percent the previous week.
The refinance share is at its lowest since August 2009. The adjustable-rate mortgage (ARM) share of activity remained unchanged
at 6.0 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.08 percent from 5.04 percent, with points
decreasing to 0.91 from 0.98 (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 4.38 percent from 4.34 percent, with points
decreasing to 0.93 from 0.98 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 7.03 percent from 6.95 percent, with points increasing to
0.3 from 0.28 (including the origination fee) for 80 percent LTV loans.
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Media inquiries should be directed to Carolyn Kemp at (202) 557-2727 or firstname.lastname@example.org.
The survey covers over 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
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.mba.org.