Applications Drop

The Market Composite Index, an overall measure of mortgage applications, dropped to 649.6 on a seasonally adjusted basis during the week ended Oct. 10 from 817.3 the week before, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were off 20.5% on the week, and down 50.1% from a year earlier. The Purchase Index decreased from 441.1 to 359.0 on a seasonally adjusted basis, while the Refinance Index slid from 3005.5 to 2340.1. Refinancings represented 53.9% of total applications, down from 55.0% the previous week, while adjustable-rate mortgages accounted for 25.2%. The average contract interest rate for 30-year fixed-rate mortgages rose slightly, from 5.79% to 5.81%, and points (including the origination fee) decreased from 1.56 to 1.49 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.