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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (102)	6/30/2003 1:41:26 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

From MBA, note the ARMs are running 15.6 of activity right now. Also this from Barron's this weekend, "Sanford Bernstein strategist Vadim Zlotnikov calculates that every half-percentage point in the 10-year TN keeps three million potential home buyers from qualifying for a mortgage on a median-priced home. Higher rates would also cut into the expected $80 billion in "consumer liquidity" expected to come from mortgage refinancing this year. The 10-year TN yield is up almost exactly half a point since its low of 3.08% two weeks ago." Washington, D.C. (June 25, 2003) - The Market Composite Index of mortgage loan applications - a measure of mortgage loan applications for purchases and refinancings - for the week ending June 20 decreased to 1554.5 on a seasonally-adjusted basis from 1701.7 one week earlier, according to the Weekly Mortgage Applications Survey of the Mortgage Bankers Association of America (MBA), which was released today. On an unadjusted basis, the Index decreased by 8.7 percent but was up 116.1 percent compared to the same week a year earlier. The MBA seasonally adjusted Purchase Index decreased to 411.2 from 419.1 the previous week. The seasonally adjusted Refinance Index decreased to 8204.6 from 9162.7 one week earlier. Other seasonally adjusted index activity included the Conventional Index, which decreased to 2265.5 from 2500.3 the previous week. The Government Index decreased to 368.0 from 369.1 the previous week. Refinancing activity decreased to 75.8 percent of total applications from 77.3 percent the previous week. The share of ARM activity increased to 15.6 percent from 14.4 percent the previous week. The average contract interest rate for 30-year fixed rate mortgages increased to 5.10 percent from the previous record low of 4.99 percent one week earlier, with points increasing to 1.62 from 1.58 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate for 15-year fixed rate mortgages increased to 4.51 percent from the previous record low of 4.41 percent one week earlier, with points increasing to 1.45 from 1.40 the previous week (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate for 1-year ARMs increased to 3.03 from 3.00 the previous week, with points decreasing to 0.91 from 1.00 the previous week (including the origination fee) for 80 percent LTV loans.