SHARE OF ADJUSTABLE-RATE MORTGAGES AT LOWEST LEVEL SINCE FEBRUARY 2004

The Market Composite Index, a measure of mortgage loan application volume, was 561.5 for the week ending Aug. 18, up 0.1 percent on a seasonally adjusted basis from 561.2 one week earlier, The Mortgage Bankers Association reported today.

On an unadjusted basis, the index decreased 1.2 percent for the week ending Aug. 18 compared with the previous week and was down 25.1 percent compared with the same week one year earlier.

The refinance share of mortgage activity increased to 40.6 percent of total applications for the week ending Aug. 18 from 39.6 percent the previous week.

The adjustable-rate mortgage (ARM) share of activity hit the lowest level since February 2004, declining to 26.4 percent of total applications from 27.2 percent the previous week.

**Taken from the California Association of Realtors Bulletin, dated August 23rd, 2006.