The Mortgage Bankers Association Wednesday reported the results of its Weekly Mortgage Applications Survey for the week ending June 22, 2007, and the index showed applications had fallen to a four-month low.
The Market Composite Index, a measure of mortgage loan application volume, was 618.6, a decrease of 3.9% on a seasonally adjusted basis from 643.7 one week earlier. On an unadjusted basis, the Index decreased 4.5% compared with the previous week and was up 16.3% compared with the same week one year earlier.
The Refinance Index decreased 2.5% to 1731.6 from 1776.8 the previous week and the seasonally adjusted Purchase Index decreased 4.9% to 428.9 from450.9 one week earlier. The seasonally adjusted Conventional Index decreased 3.6% to 909.2 from 943 the previous week, and the seasonally adjusted Government Index decreased 7.4% to 134 from 144.7 the previous week.
The four-week moving average for the seasonally adjusted Market Index is down 0.7% to 638.5 from 643. The four-week moving average is up 0.1% to444.5 from 444.0 for the Purchase Index, while this average is down 2.0% to1780.1 from 1815.8 for the Refinance Index.
The refinance share of mortgage activity increased to 38.7% of total applications from 38.0% the previous week. The adjustable-rate mortgage(ARM) share of activity increased to 20.4% from 20.3% of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 6.60%, with points decreasing to 1.54 from 1.58 (including the origination fee) for 80% loan-to-value (LTV) ratio loans. The average for 15-year fixed-rate mortgages decreased to 6.24% from 6.28%, with points decreasing to 1.41 from 1.42 (including the origination fee) for 80% LTV loans. The average for one-year ARMs decreased to 5.51% from 5.70%, with points decreasing to 1.14 from 1.16 (including the origination fee) for 80% LTV loans.