Applications Increase

The Market Composite Index, an overall measure of mortgage applications increased 4.2% from 706.4 to 735.9 on a seasonally adjusted basis for the week ending February 4, according to the Mortgage Bankers Association's Weekly Mortgage Application Survey.On an unadjusted basis, applications increased 7.5% compared with the previous week but were down 8.7% compared with the same week one year earlier. The Purchase Index increased by 1.0% to 444.6 from 440.3 the previous week. The seasonally adjusted Refinance Index increased by 7.8% to 2430.7 from 2253.9 one week earlier. Refinancings increased to 48.9% of total applications from 48.7% the previous week. The adjustable-rate mortgage share of activity increased to 31.9% from 32.5% of total applications. The average contract interest rate for 15-year fixed-rate mortgages increased to 5.48 from 5.61 one week earlier, with points increasing to 1.25 from 1.27 for 80% LTV loans. The average contract interest rate for one-year ARMs decreased to 5.06% from 5.10% one week earlier, with points increasing to 1.10 from 1.07 including the origination fee for 80% LTV loans.