Posted on 10/29/2003 5:25:05 AM PST by Starwind
WASHIGNTON , D.C. ( October 22, 2003 ) - The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 17. The Market Composite Index of mortgage loan applications - a measure of mortgage loan applications for purchases and refinancings - increased by 0.5 percent to 652.8 on a seasonally adjusted basis from 649.6 one week earlier. On an unadjusted basis, the Index decreased by 9.7 percent compared with last week and was down 42.7 percent compared with the same week one year earlier.
The MBA seasonally adjusted Purchase Index increased by 7.5 percent to 386.1 from 359.0 the previous week. The seasonally adjusted Refinance Index decreased by 5.8 percent to 2204.1 from 2340.1 one week earlier. Other seasonally adjusted index activity included the Conventional Index, which increased 0.5 percent to 915.3 from 911.0 the previous week. The Government Index increased 0.6 percent to 214.6 from 213.4 the previous week.
The refinance share of mortgage activity decreased to 50.5 percent of total applications, from 53.9 percent the previous week. The adjustable-rate mortgage ( ARM ) share of activity increased to 26.2 percent from 25.2 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.97 percent from 5.81 percent one week earlier , with points decreasing to 1.39 from 1.49 the previous week (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 5.23 percent from 5.12 percent one week earlier , with points increasing to 1.52 from 1.43 the previous week (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs increased to 3.56 percent from 3.43 percent one week earlier , with points decreasing to 1.08 from 1.09 the previous week (including the origination fee) for 80 percent LTV loans.
Mortgage rates and lender profitability are driven more by rates on Mortgage Backed Securities (MBAs) which trade at a percentage spread above treasuries.
Several factors contribute to a rise in MBA and underlying Treasury rates, primarily increased risk and lower demand.
See the discussion posts in Mortgage Meltdown?, and alos follow the links to other threads/articles posted therein for added background.
Mortgage Backed Securities (MBAs MBSs)
LOL! Freudian blame assignment?
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