*seasonally things are slightly better, but as with all of the other economic news of late, the fact is that its the government and not the private sector doing the bulk of the purchasing, and that has given cause for concern.
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 28, 2009. The Market Composite Index, a measure of mortgage loan application volume, decreased 2.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.1 percent compared with the previous week and increased 22.7 percent compared with the same week one year earlier.
The Refinance Index decreased 3.1 percent from the previous week and the seasonally adjusted Purchase Index decreased 1.0 percent from a week ago.
The only segment of the survey that posted an increase in activity was the government Purchase Index, which rose 0.5 percent from the prior week on a seasonally adjusted basis -- the seventh consecutive weekly gain. For the month of August, the government-insured share of purchase applications was 40.4 percent, up from 38.3 percent in July and 31.7 percent in August 2008. The share was the highest since February 1991.