Mortgage Applications Increase.

WASHINGTON, D.C. (March 11, 2009) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 6, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 723.4, an increase of 11.3 percent on a seasonally adjusted basis from 649.7 one week earlier. On an unadjusted basis, the Index increased 11.6 percent compared with the previous week and 5.7 percent compared with the same week one year earlier.

The Refinance Index increased 13.3 percent to 3470.7 from 3063.4 the previous week and the seasonally adjusted Purchase Index increased 7.1 percent to 253.3 from 236.4 one week earlier. The Conventional Purchase Index increased 5.4 percent while the Government Purchase Index (largely FHA) increased 10.4 percent.

The four week moving average for the seasonally adjusted Market Index is up 4.3 percent. The four week moving average is up 1.8 percent for the seasonally adjusted Purchase Index, while this average is up 5.4 percent for the Refinance Index.

The refinance share of mortgage activity increased to 67.9 percent of total applications from 66.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at 2.3 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.96 percent from 5.14 percent, with points increasing to 1.16 from 1.05 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This contract rate is the second lowest in the history of the survey, with the record low being 4.89 percent for the week ending January 9, 2009.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.54 percent from 4.73 percent, with points increasing to 1.2 from 1.13 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.21 percent from 6.13 percent, with points decreasing to 0.16 from 0.18 (including the origination fee) for 80 percent LTV loans.

Mortgage Applications

Mortgage Applications Steady in Latest Week

The number of mortgage applications filed last week was unchanged from the previous week before on a seasonally adjusted basis.

The current week's index stands 1245.7, compared to 1245.4 for the preceeding week which has been adjusted to reflect the HolidayS. unadjusted, the index decreased 40 percent compared with the preceeding week and was up 155 percent compared with the same period a week ago.

Refinance activity declined to 82.3 percent of all submitted applications, down from 82.9 from the preceeding week.

Mortgage rates declined slightly:

• 30-year fixed-rate mortgages decreased to 5.03 percent from 5.04 percent
• 15-year fixed-rate mortgages decreased to 4.79 percent from 4.91 percent
• One-year ARMs decreased to 6.15 percent from 6.36 percent

Source: Mortgage Bankers Association (12/31/2008)