MBA: Apps Rise 45.7% in Week

The Market Composite Index, an overall measure of mortgage applications, increased 45.7% on a seasonally adjusted basis to 875.3 from 600.6 for the week ended Feb. 13, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. This decline is once again driven by interest rates moving lower, causing consumers to consider refinancing, although there was a slight increase in purchase activity as well. On an unadjusted basis, the index increased 47.7% compared with the previous week and 5.2% compared with the same week one year earlier. The Purchase Index increased 9.1% to 257.3 from 235.9 one week earlier on a seasonally adjusted basis, while the Refinance Index increased 64.3% to 4472.9 from 2722.7 the week prior. Refinancings increased to 74.2% of applications from 66.7% the previous week, while adjustable-rate mortgages accounted for 1.7% of applications, down from 2.5% for the previous week, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.99% from 5.19%, with points (including the origination fee) increasing to 1.37 from 1.2 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.