Applications Drop

The Market Composite Index, an overall measure of mortgage applications, fell from 631.2 to 574.1 on a seasonally adjusted basis during the holiday-shortened week ended Dec. 26, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications plunged 45.8% on the week, and they were down 44.3% from the level of a year earlier. The Purchase Index fell from 411.6 to 390.1 on a seasonally adjusted basis, while the Refinance Index declined from 1908.3 to 1644.3. Refinancings represented 49.3% of total applications, down from 51.7% the previous week, while adjustable-rate mortgages accounted for 30.4%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.62% to 5.73%, and points (including the origination fee) decreased from 1.53 to 1.31 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.