Mortgage Applications Decline By 9.8%

The Market Composite Index, an overall measure of mortgage applications, decreased 9.8% on a seasonally adjusted basis to 1195.3 from 1324.8 during the week ended Jan. 16, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. On an unadjusted basis, there would have been an 10.3% decrease compared with the previous week and when compared with the same week one year earlier the index would have increased by 23.1%. The Purchase Index increased 2.5% to 303.1 from 295.8 one week earlier on a seasonally adjusted basis, while the Refinance Index decreased 12.4% to 6491.8 from 7414.1. Refinancings decreased to 83.3% of applications from 85.3% the previous week, while adjustable-rate mortgages accounted for 1.5% of applications, up from 1.1% for the previous week, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages increased to 5.24% from 4.89%, with points (including the origination fee) decreasing to 1.16 from 1.20 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.