Apps Jump as Rates Dive

The Market Composite Index, an overall measure of mortgage applications, surged from 533.9 to 706.0 on a seasonally adjusted basis during the holiday-shortened week ended Jan. 4 as mortgage rates fell, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. On an unadjusted basis, applications increased 81.1% on the week and were up 8.7% from the level recorded a year earlier. The Purchase Index rose from 360.8 to 414.0 on a seasonally adjusted basis, while the Refinance Index surged from 1620.9 to 2494.2. Refinancings represented 57.7% of total applications, up from 50.9% the previous week, while adjustable-rate mortgages accounted for 9.3%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages plunged from 6.05% to 5.73%, and points (including the origination fee) rose from 1.05 to 1.10 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.