Purchase Apps Set Record

Purchase applications hit record levels as the Market Composite Index, an overall measure of mortgage applications, rose from 714.1 to 781.0 on a seasonally adjusted basis during the week ended May 6, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey.On an unadjusted basis, applications rose 9.8% on the week and were up 5.3% from their level a year earlier. The Purchase Index rose from 482.5 to 526.2 on a seasonally adjusted basis, while the Refinance Index climbed from 2061.2 to 2263.3. "Strong support for home sales has been provided by a recent decline in interest rates, a strong jobs market, and nice weather during the spring buying season," said MBA chief economist Douglas Duncan. "These factors have led to a record level of purchase applications on both weekly and four-week rolling averages." Refinancings represented 39.2% of total applications, up from 39.1% the previous week, while adjustable-rate mortgages accounted for 35.3%, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.74% to 5.77%, and points (including the origination fee) increased from 1.18 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.