Weekly Mortgage Market Update; Mortgage Bankers Association for the week of September 23, 2009

Market Composite Index: (loan application volume) decreased 2.8 percent on a seasonally adjusted basis from one week earlier.

Refinance Index: decreased 0.8 percent from the previous week

Conventional Purchase Index: decreased 6.9 percent compared with the previous week and was 10.6 percent lower than the same period one year ago.

Refinance Share of Mortgage Activity: Decreased to 6.2 percent from 6.7 percent of total applications from the previous week.

ARM Refinance Activity: increased to 6.7 percent from 6.0 percent of total applications from the previous week.

MBA outlook: Payroll losses trimmed to 216,000 jobs lost. Thats the smallest drop since August of 2008. Unfortunately the unemployment rate has increased from 9.4 to 9.7%, the highest level of unemployment since 1983, according to the MBA press release. It has just about doubled since the beginning of the recession in 2007.

The MBA outlook indicates the economy will likely shed jobs for the coming months even as real gross domestic product (GDP) may have started growing in the third quarter, implying another surge in productivity growth during the quarter. The unemployment rate is not expected to peak until next year.

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