Applications Decrease Slightly

The Market Composite Index, an overall measure of mortgage applications, fell from 636.4 to 625.3 on a seasonally adjusted basis during the week ended May 25, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.The week's results include an adjustment to account for the Memorial Day holiday. On an unadjusted basis, applications decreased 12% on the week but were up 16.5% from the level recorded a year earlier. The Purchase Index rose from 427.0 to 433.6 on a seasonally adjusted basis, while the Refinance Index fell from 1874.6 to 1757.1. Refinancings represented 38% of total applications, down from 39.7% the previous week, while adjustable-rate mortgages accounted for 17.8%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 6.32% to 6.35%, and points (including the origination fee) increased from 1.41 to 1.5 for loans with 80% loan-to-value ratios, the association reported.