Refi Applications Surge

Spurred by a surge in refinance applications, the Market Composite Index, an overall measure of mortgage applications, jumped to 775.6 on a seasonally adjusted basis during the week ended Nov. 21 from 663.2 the week before, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 28.1% on the week and down 33.8% from the level of a year earlier. The Purchase Index rose from 425.9 to 459.9 on a seasonally adjusted basis, while the Refinance Index surged from 2043.9 to 2612.2. Refinancings represented 53.3% of total applications, up from 48.1% the previous week, while adjustable-rate mortgages accounted for 27.0%. The average contract interest rate for 30-year fixed-rate mortgages rose from 5.64% to 5.73%, and points (including the origination fee) fell from 1.54 to 1.45 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.