Refi-Driven App Surge Continues

The Market Composite Index, an overall measure of mortgage applications, climbed to 1562.8 on a seasonally adjusted basis during the week ended May 16 from 1417.8 the week before, as falling interest rates continued to spur refinancings, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.On an unadjusted basis, applications were up 9.7% on the week and 196.2% from the level recorded a year earlier. On a seasonally adjusted basis, the Purchase Index declined from 415.2 to 395.8, and the Refinance Index jumped from 7250.0 to 8351.1. Refinancings represented 76.0% of total applications, up from 72.4% the previous week, while adjustable-rate mortgages accounted for 12.5%. The average contract interest rate for 30-year fixed-rate mortgages fell from a survey-record low of 5.27% to a new low of 5.17%, and points (including the origination fee) decreased from 1.43 to 1.40 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.