Apps Rise as Refis Pass 50%

The Market Composite Index, an overall measure of mortgage applications, rose from 599.0 to 647.6 on a seasonally adjusted basis during the week ended Dec. 1 as refinancings climbed above 50% of all applications for the first time in two-and-a-half years, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications increased 52.0% on the week and were up 1.9% from the level recorded a year earlier. The Purchase Index rose from 406.7 to 426.6 on a seasonally adjusted basis, while the Refinance Index rose from 1749.6 to 1989.7. Refinancings represented 50.1% of total applications (the highest level since April 2004), up from 46.9% the previous week, while adjustable-rate mortgages accounted for 23.9% (the lowest level since October 2003), the MBA said. The average contract interest rate for 30-year fixed-rate mortgages fell from 6.13% to 5.98%, its lowest level since October 2005, and points (including the origination fee) fell from 0.97 to 0.91 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.