Purchase Apps Hit Record High

The Market Composite Index, an overall measure of mortgage applications, rose from 755.5 to 887.0 on a seasonally adjusted basis during the week ended June 10, partly on the strength of a record high in the Purchase Index, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications increased 29.2% on the week and were up 46.1% from the level recorded a year earlier. The Purchase Index rose from 479.3 to a record high of 529.3 on a seasonally adjusted basis, while the Refinance Index climbed from 2362.1 to 2967.4. "This week there was a combination of record-setting purchase activity as well as a substantial pickup in refinance applications, with the Refinance Index at its highest level since April 2004," said Michael Fratantoni, senior director of single-family research and economics. Refinancings represented 46.4% of total applications, up from 42.9% the previous week, while adjustable-rate mortgages accounted for 30.9%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.55% to 5.62%, and points (including the origination fee) increased from 1.12 to 1.25 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mortgagebankers.org.