The index measures the number of loan purchases and refinances and the figures are on a seasonally adjusted basis. When reviewed on an unadjusted basis, the application index decreased a flat 15%. This is, however, an improvement over the same week last year. The improvement of the same week from 2000 to 2001 was 46.8%.
The seasonally adjusted Purchase Index fell from 321.9 of the week ending May 11 to 291.2 the week ending May 18. The Conventional Index decreased to 619.6 from 748.3 and the Government Index also decreased from 246.9 to 234.8.
Refinancing activity represented 44.7% of the total loan applications. The seasonally adjusted Refinance Index decreased from 1948.1 to 1546.8. The decrease was a somewhat dramatic fall-off of 47.8%. ARM activity increased to 9.6% from 9.3%.
The MBA reports that the average contract interest rate for 30-year fixed rate mortgages was 7.16%. This was a decrease of 7.2% with points increasing to 1.44 from 1.31 for 80% loan-to-value ratio loans. This includes the origination fee.
Also, the average contract interest rates for one-year ARMs were 5.72%, decreasing from 5.84. Points decreased from 1.23 to 1.17 for 8-% LTV loans. This too includes the origination fee.
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