Applications Surge

The Market Composite Index, an overall measure of mortgage applications, jumped to 817.3 on a seasonally adjusted basis during the week ended Oct. 3 from 707.2 the week before, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 15.7% on the week, but down 38.5% from a year earlier. The Purchase Index increased from 398.0 to 441.1 on a seasonally adjusted basis, while the Refinance Index surged from 2505.8 to 3005.5. Refinancings represented 55.0% of total applications, up from 53.1% the previous week, while adjustable-rate mortgages accounted for 22.7%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.67% to 5.79%, and points (including the origination fee) increased from 1.26 to 1.56 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.