Applications Decline

The Market Composite Index, an overall measure of mortgage applications, fell from 561.5 to 556.5 on a seasonally adjusted basis during the week ended Aug. 25, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 2.3% on the week and were down 22.4% from the level recorded a year earlier. The Purchase Index fell from 382.2 to 375.9 on a seasonally adjusted basis (its lowest level since November 2003), while the Refinance Index rose slightly, from 1608.5 to 1609.2. Refinancings represented 41.5% of total applications, up from 40.6% the previous week, while adjustable-rate mortgages accounted for 26.8%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages increased from 6.38% to 6.39%, and points (including the origination fee) rose from 0.98 to 1.03 for loans with 80% loan-to-value ratios, the association reported.