Apps Fall as Refi Slide Continues

The Market Composite Index, an overall measure of mortgage applications, fell to 638.6 on a seasonally adjusted basis during the week ended Aug. 22 from 736.7 the week before as the Refinancing Index dropped for the eighth straight week, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were down 14.0% on the week and 40.2% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index decreased from 389.5 to 375.5, and the Refinance Index declined from 2756.8 to 2169.0, its lowest level since June 2002. Refinancings represented 48.9% of total applications, down from 53.4% the previous week, while adjustable-rate mortgages accounted for 24.4%. The average contract interest rate for 30-year fixed-rate mortgages was unchanged, at 6.22%, and points (including the origination fee) decreased from 1.37 to 1.29 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.