Applications Decline

The Market Composite Index, an overall measure of mortgage applications, fell from 756.2 to 722.5 on a seasonally adjusted basis during the week ended Aug. 26, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 5.7% on the week, but were up 12.7% from the level recorded a year earlier. The Purchase Index fell from 488.4 to 470.6 on a seasonally adjusted basis, while the Refinance Index declined from 2313.9 to 2187.8. The four-week moving average for the Purchase Index fell 1.2%, from 495.3 to 489.3, and the comparable average for the Refinance Index fell 0.7%, from 2256.6 to 2240.9. Refinancings represented 43.8% of total applications, up from 43.7% the previous week, while adjustable-rate mortgages accounted for 27.8%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages decreased from 5.78% to 5.73%, and points (including the origination fee) increased from 1.20 to 1.21 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.