Mortgage Application Volume Breaks Three Week Losing Streak

Mortgage applications jumped 6.3 percent on arnseasonally adjusted basis during the holiday-shortened week ended September 9rnaccording to data released this morning by the Mortgage BankersrnAssociation.  The figure included anrnadjustment to account for Labor Day and was the first increase in volume inrnfour weeks.</p

The Market Composite Index increased 15.4 percent onrnan unadjusted basis.  The unadjusted PurchasernIndex also rose, increasing 7.0 percent from the week ended September 2.  The index dropped 16.2 percent whenrnunadjusted.  This Index was down 7.2rnpercent from the same week in 2010.  </p

The Refinance Index also ended a three week decline,rnrising 6.0 percent despite the shortened week for which it is not adjusted.    On arnseasonally unadjusted basis, however, the Index was down 15.2 percent from thernprevious week and is 23.5 percent lower than the same week one year ago. </p

Thernfour-week moving average for the Market Index was down 2.9 percent while the movingrnaverage of the Purchase Index was up 0.5 percent and the Refinance Indexrndropped 3.9 percent.  The moving averagesrnare all seasonally adjusted.  </p

Thernrefinance share of mortgage activity increasedrnto 77.3 percent of total applications from 77.1 percent the previous week. Thernadjustable-rate mortgage (ARM) share of activity decreasedrnto 6.9 percent from 7.1 percent of total applications from thernprevious week.</p

Thernaverage contract interest rate for both the 30-year fixed-rate mortgage (FRM)</aand the 15-year FRM set two more historic records.  The 30-year decreased to 4.17 percent withrn0.97 point (including the origination fee) from 4.23 percent with 1.04 point.  The previous low was established during thernweek ended October 8, 2010 at 4.21 percent. The 15-year FRM was down one basisrnpoint from the previous week's historic low with points going up from 0.94 torn1.17.  All data is for 80 percentrnloan-to-value loans.  </p

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Refinance Index vs 30 Yr Fixed</p

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