Apps Surge as Purchase Index Sets Record

The Market Composite Index, an overall measure of mortgage applications, surged to 1246.6 on a seasonally adjusted basis during the week ended May 2 from 1050.8 the week before, while the Purchase Index hit a record high, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 18.8% on the week and 106.1% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index jumped from 356.0 to a record high of 416.0, and the Refinance Index surged from 5092.0 to 6077.8. Refinancings represented 68.7% of total applications, up from 68.4% the previous week, while adjustable-rate mortgages accounted for 13.1%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.51% to 5.53%, and points (including the origination fee) increased from 1.47 to 1.50 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.