Applications Plunge

The Market Composite Index, an overall measure of mortgage applications, fell from 811.8 to 653.8 on a seasonally adjusted basis during the week ended Dec. 14, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications decreased 21.3% on the week but were up 1.7% from the level recorded a year earlier. The Purchase Index fell from 472.0 to 422.2 on a seasonally adjusted basis, while the Refinance Index declined from 2879.8 to 2093.6. Refinancings represented 53.2% of total applications, down from 57.6% the previous week, while adjustable-rate mortgages accounted for 9.9%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 6.07% to 6.18%, and points (including the origination fee) fell from 1.17 to 1.12, for loans with 80% loan-to-value ratios, the association reported.