Applications Jump

The Market Composite Index, an overall measure of mortgage applications, jumped from 496.2 to 661.7 on a seasonally adjusted basis during the week ended Sept. 12 as falling interest rates boosted mortgage demand, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The Purchase Index rose from 371.5 to 380.4 on a seasonally adjusted basis, while the Refinance Index climbed from 1222.9 to 2300.0. Refinancings represented 51.6% of total applications, up from 36.3% the previous week, while adjustable-rate mortgages accounted for 4.0%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages fell from 6.06% to 5.82%, and points (including the origination fee) increased from 1.02 to 1.13 for loans with 80% loan-to-value ratios, the association reported. "Renewed financial concerns should keep long-term Treasury yields low and translate to lower mortgage rates in the near term despite some widening in mortgage spreads," said Orawin Velz, the MBA's associate vice president of economic forecasting. "We expect to see meaningful increases in mortgage demand in coming weeks on both the purchase and refi sides." The MBA can be found online at http://www.mortgagebankers.org.