Refi Drop Drives App Decline

The Market Composite Index, an overall measure of mortgage applications, fell from 822.8 to 665.1 on a seasonally adjusted basis during the week ended Feb. 22, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. On an unadjusted basis, applications decreased 25.8% on the week but were up 5.1% from the level recorded a year earlier. The Purchase Index rose from 357.6 to 358.2 on a seasonally adjusted basis, while the Refinance Index plunged from 3533.8 to 2458.9. Refinancings represented 52.0% of total applications, down from 61.7% the previous week, while adjustable-rate mortgages accounted for 15.0, the MBA said. The average contract interest rate for 30-year fixed-rate mortgages rose from 6.09% to 6.27%, and points (including the origination fee) rose from 1.10 to 1.15 for loans with 80% loan-to-value ratios, the association reported. The MBA can be found online at http://www.mortgagebankers.org.