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Mortgage Applications Decline

According to the Mortgage Bankers Association Weekly Mortgage Applications survey, loan application volume has decreased for the week ending July 28.



The Market Composite Index saw a decrease of 1.2% on a seasonally adjusted basis, landing at 527.6. This is the lowest point for the index since May 2002.



On an unadjusted basis, the Index was down 1.4% when compared to the previous week. When compared to the same week last year, the Index was down 29%. This indicates that the housing market is indeed in the mist of a severe slowdown.



The seasonally-adjusted Purchase Index saw a decline of 3.3%, down to 376.2 from 389.0 the week earlier. This is the lowest point for purchases since November 2003.



However, the Refinance Index experienced an increase of 2.3%. The Government Index also saw an increase of 0.9% for the week.



The four week moving average for the Market Index is down 1.5%. The purchase index is down 2.3, while the Refinance Index is down 0.1%.



Refinancings accounting for 37% of all mortgage activities, up from 35.6% the week earlier. The ARM share of activity fell to 27.8% of total applications, down from 28.6%. This is the lowest share for ARMs since March 2004.



The average interest rate on a 30-year, fixed-rate mortgage fell to 6.62%, dwon from 6.69%. Points also decreased to 1.00 from 1.07 for 80% mortgages.



The average interest rate for a one-year ARM fell to 6.18%, down from 6.25%. Points decreased slightly, from 0.83% to 0.81% on 80% mortgages.



Overall, the market is slowing. Sales of new homes are down 11% in the past year, while existing home sales are down 8.9%. Housing starts have decreased 11% in the last year. The home builders sentiment index -- the report of builder confidence -- is down 41 points in the past year, to a low of 39.



About RateEmpire.com

RateEmpire.com an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, banking, investing, taxes, debt management and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com



Source: http://www.RateEmpire.com

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