|Title: ||Mortgage Applications Reach Highest Level Since 2009 in Latest MBA Weekly Survey|
WASHINGTON, D.C. (June 13, 2012) — Mortgage applications increased 18.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s
(MBA) Weekly Mortgage Applications Survey for the week ending June 8, 2012. Last week’s results included an adjustment for
the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 18.0 percent on a seasonally adjusted
basis from one week earlier to the highest level since May 2009. On an unadjusted basis, the Index increased over 30 percent
compared with the previous week. The Refinance Index increased over 19 percent from the previous week to the highest index
level since April 2009. The seasonally adjusted Purchase Index increased around 13 percent from one week earlier. The unadjusted
Purchase Index increased over 23 percent compared with the previous week and was 4 percent higher than the same week one year
“Mortgage application volume increased sharply last week. The increase was accentuated due to the comparison to the week
including Memorial Day, but the level of refinance and total market activity is the highest since the spring of 2009,” said
Michael Fratantoni, MBA's Vice President of Research and Economics. “Refinance volume increased as borrowers were able to
lock in at mortgage rates below 4 percent, and purchase application volume was its highest level in over six months. HARP
volume has been steady in recent weeks at about 28 percent of refinance applications.”
The refinance share of mortgage activity increased to 79 percent of total applications from 78 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity remains around 5 percent of total applications from the previous week.
The average loan size of all loans for home purchase in the US was $243,733 in May 2012, up from $238,135 in April 2012. The
average loan size for a refinance was $226,576, up from $219,664 in April. The largest purchase loans were made in the Pacific
region at $357,978 while the largest refinance loans were also made in the Pacific region at $313,826.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased
to 3.88 percent from 3.87 percent, with points decreasing to 0.43 from 0.46 (including the origination fee) for 80 percent
loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased
to 4.12 percent from 4.13 percent, with points increasing to 0.41 from 0.35 (including the origination fee) for 80 percent
LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.71 percent from 3.70
percent, with points decreasing to 0.59 from 0.60 (including the origination fee) for 80 percent LTV loans. The effective
rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.23 percent from 3.20 percent, with points
increasing to 0.48 from 0.46 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last
The average contract interest rate for 5/1 ARMs remained unchanged at 2.78 percent, with points increasing to 0.49 from 0.40
(including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mortgagebankers.org/WeeklyApps, contact firstname.lastname@example.org or click here.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since
1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mba.org.