MBA: Apps Jump After Rate Drop Below 5%

The Market Composite Index, an overall measure of mortgage applications, increased 11.3% on a seasonally adjusted basis to 723.4 from 649.7 for the week ended March 6, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The catalyst for the move was the average for the 30-year fixed-rate mortgage falling below the 5% barrier for the third time this year. The first time was the week of Jan. 9, when the average was 4.89%, and the second was the week of Feb. 13, when the average was 4.99%. For the current week, the average contract interest rate for 30-year fixed-rate mortgages decreased to 4.96% from 5.14%, with points (including the origination fee) increasing to 1.16 from 1.05 for loans with 80% loan-to-value ratios, the association said. On an unadjusted basis, the index increased 11.6% compared with the previous week and 5.7% compared with the same week one year earlier. The Purchase Index increased 7.1% to 253.3 from 236.4 one week earlier on a seasonally adjusted basis, while the Refinance Index increased 13.3% to 3470.7 from 3063.4 the week prior. Refinancings decreased to 67.9% of applications from 66.9% the previous week, while adjustable-rate mortgages accounted for 2.3% of applications, unchanged for the previous week, the MBA said. The MBA can be found online at http://www.mortgagebankers.org.