Apps Rise as Refis Jump

The Market Composite Index, an overall measure of mortgage applications, rose to 771.8 on a seasonally adjusted basis during the week ended Sept. 5 from 628.7 the week before, as the Refinance Index jumped more than 45%, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 2.9% on the week but down 37.7% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index increased from 396.1 to 408.8, and the Refinance Index jumped from 1981.5 to 2883.6. "With mortgage rates decreasing for the first time in over two months, consumers are taking advantage of a dip in interest rates," said MBA chief economist Doug Duncan. "The rise to a 55% share of applications for refinances from 46% the previous week shows consumer attention to possibly the final opportunity to capture a temporary rate drop in a rising rate environment. While the percentage increase in the indexed level of activity was large, this week's Refinance Index level was less than one-third of the level experienced at the height of the boom in early June." The average contract interest rate for 30-year fixed-rate mortgages fell from 6.25% to 5.99%, and points (including the origination fee) increased from 1.27 to 1.41 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.