November 3 2010 (Chris Moore)
The Mortgage Bankers Associations (MBA) Weekly Mortgage Applications Survey revealed that applications to purchase homes rose 1.4 percent for the week ending October 29th 2010 compared to the previous week on a seasonally adjusted basis.
On an unadjusted basis, purchases increased 0.2 percent last week compared to the previous week, but were down 28 percent compared to the same week a year ago.
The Market Composite Index, a measure of mortgage loan application volume, decreased 5.0 percent on a seasonally adjusted basis from one week earlier due to a 6.4% decrease from the previous week. On an unadjusted basis, the Index decreased 5.3 percent compared with the previous week.
The refinance share of mortgage activity decreased to 81.3 percent of total applications from 82.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.4 percent from 5.3 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.28 percent from 4.25 percent, with points increasing to 1.07 from 1.00 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.64 percent from 3.67 percent, with points increasing to 1.08 from 0.96 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate