Applications Drop

The Market Composite Index, an overall measure of mortgage applications, fell from 887.0 to 786.8 on a seasonally adjusted basis during the week ended June 17, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 11.7% on the week but were up 29.6% from the level recorded a year earlier. The Purchase Index fell from a record high of 529.3 to 479.4 on a seasonally adjusted basis, while the Refinance Index declined from 2967.4 to 2575.0. Refinancings represented 45.6% of total applications, down from 46.4% the previous week, while adjustable-rate mortgages accounted for 30.7%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages crept up from 5.62% to 5.63%, and points (including the origination fee) decreased from 1.25 to 1.17 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.