|Title: ||Mortgage Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (February 16, 2011) â€” The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February
11, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 9.5 percent on a seasonally
adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7.9 percent compared with the previous
The Refinance Index decreased 11.4 percent from the previous week and is the lowest Refinance Index recorded in the survey
since the week ending July 3, 2009. The seasonally adjusted Purchase Index decreased 5.9 percent from one week earlier. The
unadjusted Purchase Index decreased 0.9 percent compared with the previous week and was 18.2 percent lower than the same week
one year ago.
"Mortgage rates remained above 5 percent last week, up almost a full percentage point from their October lows, and refinance
volume continued to drop," said Michael Fratantoni, MBAâ€™s Vice President of Research and Economics. "Applications for home
purchases also declined on a seasonally adjusted basis. Buyers have not returned to the market as rising rates have reduced
affordability, to some extent."
The four week moving average for the seasonally adjusted Market Index is down 4.5 percent. The four week moving average is
down 1.9 percent for the seasonally adjusted Purchase Index, while this average is down 6.2 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 64.0 percent of total applications from 66.6 percent the previous week.
This is the fourth straight week the share has declined. The adjustable-rate mortgage (ARM) share of activity increased to
6.0 percent from 5.9 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.12 percent from 5.13 percent, with points
increasing to 0.85 from 0.84 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective
rate also decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 4.34 percent from 4.29 percent, with points
decreasing to 0.85 from 1.02 (including the origination fee) for 80 percent LTV loans. This is the highest contract 15-year
rate observed in the survey since April 2010. The effective rate also increased from last week.
If you would like to purchase a subscription of MBAâ€™s Weekly Applications Survey, please contact MBA Research at (202) 557-2830
or firstname.lastname@example.org or click here.
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.mortgagebankers.org.