by Calculated Risk on 3/29/2006 10:10:00 AM

The Mortgage Bankers Association (MBA) reports: Mortgage Application Volume Ticks Up


Click on graph for larger image.

The Market Composite Index, a measure of mortgage loan application volume, was 571.7, an increase of 1.2 percent on a seasonally adjusted basis from 565.0 one week earlier. On an unadjusted basis, the Index increased 1.0 percent compared with the previous week but was down 15.0 percent compared with the same week one year earlier.

The seasonally-adjusted Purchase Index increased by 2.7 percent to 404.1 from 393.6 the previous week whereas the Refinance Index decreased by 1.0 percent to 1558.4 from 1574.5 one week earlier.

Mortgage rates increased:

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.36 percent from 6.31 percent ...

The average contract interest rate for one-year ARMs increased to 5.83 percent from 5.68 percent ...

Change in mortgage applications from one year ago (from Dow Jones):

Total	-15.0%
Purchase	-14.3%
Refi	-16.1
Fixed-Rate	-4.3%
ARM	-33.4%

ARM activity has fallen 33% from last year. ARM rates will probably rise again next week with the increase in the FED Funds rate.

Purchase activity is off 14% from last year. This provides further evidence that housing is slowing and suggests that the substantial drop in February New Home Sales was not a statistical anomaly.