MBA Sees Slip in Loan Applications

The Mortgage Bankers Association's Market Composite Index, an overall indication of home loan application volume, fell 2.8% on a seasonally adjusted basis to 709.1 for the week ending May 27, down from 729.6 one week earlier.However, on an unadjusted basis, applications were 12.7% higher than in the same week one year earlier. The purchase index decreased by 4.1% last week to 462.7, from 482.3 the week before. The refinance index fell slightly to 2142.1, from 2167.9 the week before. The refinance share of mortgage activity increased to 41.2% of all applications, from 40.3% the previous week. The adjustable-rate share of activity decreased to 33.3% of applications from 34.8% the previous week. The average contract interest rate for 30-year fixed rate mortgages decreased to 5.61%, down two basis points from the week before, with points decreasing to 1.07 from 1.27 for 80% loan-to-value ratio loans. The MBA can be found online at http://www.mortgagebankers.org.