WASHINGTON, D.C. – January 5, 2011 – (RealEstateRama) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the weeks ending December 24, 2010 and December 31, 2010. For the week ending December 24, 2010, the Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on a seasonally adjusted basis from the prior week. For the week ending December 31, 2010, this index increased 2.3 percent on a seasonally adjusted basis. Both weeksâ€™ results include an adjustment to account for the Christmas and New Yearâ€™s Day holidays. On an unadjusted basis, the Index decreased 23.7 percent the week before Christmas and 10.0 percent the week after.
For the week ending December 24, 2010, the Refinance Index decreased 7.2 percent from the previous week and the seasonally adjusted Purchase Index increased 3.1 percent from one week earlier. The following week, the Refinance Index increased 3.9 percent and the seasonally adjusted Purchase Index decreased 0.8 percent. The unadjusted Purchase Index decreased 18.1 percent the week before Christmas and decreased 12.2 percent the week following. This measure was 12.1 percent higher and 6.1 percent lower, respectively, than the same period a year ago.
The refinance share of mortgage activity for the week ending December 31, 2010 was 71.0 percent, an increase from 70.3 percent for the week ending December 24, 2010.
For the week ending December 24, 2010, the average contract interest rate for 30-year fixed-rate mortgages increased to 4.93 percent from 4.84 percent, with points decreasing to 0.63 from 0.96 (including the origination fee) for 80 percent loan-to-value (LTV) loans. For the week ending December 31, 2010, the average contract interest rate for 30-year fixed-rate mortgages decreased to 4.82 percent with points increasing to 1.11.
For the week ending December 24, 2010, the average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 4.22 percent, with points increasing to 1.34 from 1.19 (including the origination fee) for 80 percent LTV loans. For the week ending December 31, 2010, the average contract interest rate for 15-year fixed-rate mortgages increased to 4.23 percent with points decreasing to 1.00.
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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.mortgagebankers.org.