Mortgage Volume Rises

Mortgage volume rises after hitting eight-year low

The refinance index surged 16 percent, while the purchase index increased 9 percent for the week ending Nov. 7.
(11/14/2008)

After sinking to its lowest level since 2000, mortgage application activity increased 11.9 percent on a seasonally adjusted basis for the week ending Nov. 7, the Mortgage Bankers Association Reported.

According to the weekly mortgage applications survey, the Market Composite Index increased to 425 from 379.9 one week earlier.

On an unadjusted basis, the Index increased 10.5 percent compared with the previous week and was down 40.0 percent compared with the same week one year earlier. Data was delayed a day due to the Veteran’s Day holiday.

The Refinance Index increased 16.1 percent to 1248.4 from the previous week and the seasonally adjusted Purchase Index increased 9.0 percent to 284.4 from one week earlier. The Conventional Purchase Index increased 6.5 percent while the Government Purchase Index (largely FHA) increased 15.3 percent.

The four week moving average for the seasonally adjusted Market Index is down 3.7 percent. The four week moving average for the seasonally adjusted Purchase Index is down 2.5 percent, while this average is down 5.1 percent for the Refinance Index.

The refinance share of mortgage activity increased to 45.1 percent of total applications from 42.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 2.3 percent from 2.5 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.24 percent from 6.47 percent, with points decreasing to 1.17 from 1.19 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.90 percent from 6.14 percent, with points decreasing to 1.12 from 1.22 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs decreased to 6.77 percent from 6.86 percent, with points increasing to 0.43 from 0.42 (including the origination fee) for 80 percent LTV loans.