Applications Survey: Only Government Purchases Trend Up

The latest Mortgage Bankers Association Weekly Mortgage Applications survey shows an overall seasonally adjusted 2.2% decline in apps, with only the government-insured share of purchases rising. The government Purchase Index rose 0.5% in the latest recorded week, which ended Aug. 28. That index has seen seven consecutive weekly gains. In the latest week, the government-insured share of purchase applications during the period was 40.4%, the highest share seen since 1991. This is up from 38.3% in July and 31.7% in August 2008. The overall Purchase Index dropped 1.0% and the Refinance Index fell 3.1% on the week on a seasonally adjusted basis. On an unadjusted basis, the overall Market Composite Index decreased 3.1% on the week but increased 22.7% compared to the same week one year earlier. The four-week moving average for the seasonally adjusted Market Index is up 1.7%. This same average is up 1.2% for the seasonally adjusted Purchase Index and up 2.1% for the Refinance Index. The refi share of mortgage activity during the week stayed constant at 56.5% while the adjustable-rate mortgage share of activity fell to 5.6% of total applications from 6.5% the previous week. During the week, the MBA said the average contract interest rate for 30-year fixed rate mortgages slid to 5.15% from 5.24%, with points (including the origination fee) increasing to 1.09 from 1.07 for loans with 80% loan-to-value ratios. The average rate for 15-year FRMs inched down to 4.57% from 4.58%, and the points for 15-year FRMs with 80% LTVs dropped to 0.85 from 1.18. The average rate for one-year ARMs fell to 6.71% from 6.74%, and the points for one-year ARMs with 80% LTVs rose to 0.20 from 0.17.