Applications Rise

The Market Composite Index, an overall measure of mortgage applications, rose to 983.2 on a seasonally adjusted basis during the week ended Aug. 1 from 972.4 the week before, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 1.2% on the week and down 6.9% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index increased from 426.9 to 456.4, and the Refinance Index declined from 4145.8 to 4047.5. Refinancings represented 58.3% of total applications, down from 60.4% the previous week, while adjustable-rate mortgages accounted for 21.7%. "The relatively modest drop in refinancing activity despite a rather sharp increase in interest rates indicates some borrowers decided this might be their last chance to refinance before rates went up further," said Jay Brinkmann, the MBA's vice president of research and economics. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.87% to 6.37%, and points (including the origination fee) decreased from 1.64 to 1.36 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.