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Mortgage Applications Increase In Latest MBA Weekly Survey
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The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 10, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 489.3, an increase of 5.1 percent on a seasonally adjusted basis from 465.5 one week earlier. On an unadjusted basis, the Index increased 5.4 percent compared with the previous week and was down 17.0 percent compared with the same week one year earlier.
"Treasury yields were extremely volatile last week. The yield on the 10-year Treasury note -- the benchmark for 30-year fixed mortgage rate -- moved up about 40 basis points over the course of the week," said Orawin Velz, MBA's Associate Vice President of Economic Forecasting. "Lower yields earlier in the week appeared to have spurred refinance activity, which then faded as the week went on and rates began to rise."
The Refinance Index increased 12.5 percent to 1514.2 from the previous week and the seasonally adjusted Purchase Index decreased 0.3 percent to 313.5 from one week earlier. The Conventional Purchase Index increased 0.4 percent while the Government Purchase Index (largely FHA) decreased 2.1 percent.
The four week moving average for the seasonally adjusted Market Index is down 7.9 percent. The four week moving average for the seasonally adjusted Purchase Index is down 5.0 percent, while this average is down 11.2 percent for the Refinance Index.
The refinance share of mortgage activity increased to 46.4 percent of total applications from 43.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 2.6 percent from 2.3 percent of total applications from the previous week.
Posted: October 15, 2008 Wednesday 07:15 AM