Index: Slight Dip in Rate Fails to Affect Weekly Applications

A slight decrease in the average 30-year mortgage rate for the week ended June 12 had no impact on applications as the Mortgage Bankers Association Weekly Applications Survey Market Composite Index fell nearly 16% on a seasonally adjusted basis. The MCI, an overall measure of mortgage applications, was 514.4, compared with 611.0 one week earlier, continuing the downward trend of recent weeks. The refinance index decreased 23.3% to 1998.1 from 2605.7 the previous week while the seasonally adjusted purchase index decreased 3.5% to 261.2 from 270.7 one week earlier. Moreover, the share of refi applications continued to fall, to 54.1%, down from 59.4% the previous week. On an unadjusted basis, the index decreased 15.8% compared with the previous week and increased 0.3% compared with the same week one year earlier. The rising mortgage rates of recent weeks have contributed to an increase in adjustable-rate mortgage applications, up to 4.3%, from 3.4% for the previous week, the MBA said. There was a decrease in the average contract interest rate for 30-year fixed-rate mortgages to 5.50% from 5.57%, with points (including the origination fee) dropping 20 basis points to 0.89 from 1.09 for loans with 80% loan-to-value ratios, according to the association. The MBA can be found online at http://www.mortgagebankers.org.