MBA releases survey numbers

Real Estate Weekly, August 16, 2000

The Mortgage Bankers Association of America (MBA) released its weekly mortgage application survey results, reporting that the index of mortgage loan applications for the week ending August 4 increased 6.3% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the application index increased 5.9% and was up 9.9% compared to the same week a year earlier.

The MBA seasonally adjusted purchase index increased from 306.6 the previous week to 327.4; the seasonally adjusted refinance index increased from 346.0 the previous week to 360.1. Other seasonally adjusted index activity included the conventional index, which increased from 377.7 the previous week to 396.6 and the government index., which increased from 203.3 the previous week to 224.5.

Refinancing activity represented 15.0% of total applications, decreasing from last week's 15.2%. ARM activity decreased from 16.5% the previous week to 15.3%.

The survey provided tile following information on the state of the home mortgage market:

The average contract interest rate for 30-year fixed rote mortgages was 8.04%, decreasing from the previous week's rate of 8.21%, with points decreasing from 1.28 the previous week 1.25 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 1-year ARMs was 7.87%, increasing from the previous week's rate of 7.7 1%, with points increasing from 1.06 the previous week to 1.08 (including the origination fee) for 80% LTV loans.

The survey covers approximately 40% of all U.S. retail residential mortgage originations and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.