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Mortgage Applications Increase as Fed’s Announcement Spurs Activity
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The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 20, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 1159.4, an increase of 32.2 percent on a seasonally adjusted basis from 876.9 one week earlier. On an unadjusted basis, the Index increased 31.4 percent compared with the previous week and 18.0 percent compared with the same week one year earlier.
“Mortgage rates fell sharply to low levels not seen in six decades following the Federal Reserve’s announcement on the Treasury bond and mortgage-backed securities purchase programs. The drop offered a sizable refinance incentive for most homeowners sparking a pickup in refinance activity,” said Orawin Velz, Associate Vice President of Economic Forecasting.
The Refinance Index increased 41.5 percent to 6363.2 from 4497.6 the previous week and the seasonally adjusted Purchase Index increased 4.2 percent to 267.8 from 257.1 one week earlier. The Conventional Purchase Index increased 3.9 percent while the Government Purchase Index (largely FHA) increased 4.6 percent.
The four week moving average for the seasonally adjusted Market Index is up 13.9 percent. The four week moving average is up 1.7 percent for the seasonally adjusted Purchase Index, while this average is up 18.7 percent for the Refinance Index.
The refinance share of mortgage activity increased to 78.5 percent of total applications from 72.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 1.4 percent from 2.0 percent of total applications from the previous week.
Posted: March 25, 2009 Wednesday 07:00 AM