Is that the floor collapsing?
From the Mortgage Bankers Association:
he Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 15, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 10.5 per cent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index also decreased 10.5 per cent compared with the previous week. This week’s results do not include an adjustment for the Columbus Day holiday.
The Refinance Index decreased 11.2 per cent from the previous week. The seasonally adjusted Purchase Index decreased 6.7 per cent from one week earlier. The unadjusted Purchase Index decreased 6.6 per cent compared with the previous week and was 29.4 per cent lower than the same week one year ago.
The four week moving average for the seasonally adjusted Market Index is up 0.4 per cent. The four week moving average is down 1.1 per cent for the seasonally adjusted Purchase Index, while this average is up 0.7 per cent for the Refinance Index.
The refinance share of mortgage activity decreased to 82.4 per cent of total applications from 83.1 per cent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.8 per cent from 5.4 per cent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.34 per cent from 4.21 per cent, with points decreasing to 0.81 from 1.02 (including the origination fee) for 80 per cent loan-to-value (LTV) ratio loans. This is the first increase in the 30-year contract rate in six weeks. The effective rate also increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.74 per cent from 3.62 per cent, with points decreasing to 1.00 from 1.06 (including the origination fee) for 80 per cent LTV loans. This is the first increase in the 15-year contract rate in six weeks. The effective rate also increased from last week.
The survey covers over 50 per cent 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 16, 1990=100.