MBA: Report Purchase Index at 12Y Low!

From the Mortgage Bankers Association...

The Market Composite Index, a measure of mortgage loan application volume decreased 2.5 percent on a seasonally adjusted basis from one week earlier. The four week moving average for the seasonally adjusted Market Index is down 1.2 percent.

The Refinance Index decreased 1.4 percent from the previous week. The four week moving average is up 1.4 percent for the Refinance Index. The refinance share of mortgage activity increased to 72.9 percent of total applications from 71.5 percent the previous week. This refinance share is the highest share since the week ending May 15, 2009.

The Purchase Index decreased 4.7 percent from one week earlier. The four week moving average is down 5.8 percent for the seasonally adjusted Purchase Index.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.83 percent from 4.90 percent, with points increasing to 1.17 from 1.03 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest contract rate observed by the survey since mid-May of this year.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.32 percent from 4.33 percent, with points decreasing to 1.01 from 1.15 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs decreased to 6.82 percent from 6.85 percent, with points decreasing to 0.28 from 0.29 (including the origination fee) for 80 percent LTV loans.