MBA: Record Low Rate, Apps Fall

The Mortgage Bankers Association of America has reported record low rates, but also a decrease in applications.The MBA's index for the week ending Dec. 20 decreased 7.8% to 908.3 on a seasonally-adjusted basis from 985.5 the previous week. On an unadjusted basis, the index decreased 8.4% but was up 77.0% compared to the same week a year earlier. Purchases decreased to 359.4 from 379.9 the previous week and refinances decreased to 4101.0 from 4507.6 the previous week. Conventional loans decreased to 1297.6 from 1415.5 the previous week and government loans decreased to 258.7 from 267.8 the previous week. Refinancing activity represented 72.5% of total applications, decreasing from 73% the previous week. The share of ARM activity decreased to 13.3% from 14.1% the previous week. The average contract interest rate for 30-year fixed rate mortgages decreased to 5.74%, tying the record low that was previously set the week ended Nov. 8. The MBA can be found online at http://www.mbaa.org.