Refi Index Soars to Record

The Refinance Index skyrocketed to a record high during the week ended March 7, surpassing the previous record by 2000 points, according to the Mortgage Bankers Association of America's Weekly Mortgage Applications Survey.The refi index rose to 8920.9 from 6614.0 the week before, compared with the previous high of 6926.9 recorded last October. This surge powered the Market Composite Index to a record high of 1603.1, shattering the previous record of 1317.0 set last October, the MBA said. On an unadjusted basis, applications overall were up 26.2% on the week and 190.1% from the level recorded a year earlier. Refinancings represented 79.8% of total applications, also a record high (beating the 78.4% recorded in November 2001), while adjustable-rate mortgages accounted for 11.4%. The average contract interest rate for 30-year fixed-rate mortgages fell from a record low of 5.57% to a new record of 5.42%, and points (including the origination fee) increased from 1.46 to 1.55 for loans with 80% loan-to-value ratios, the MBA reported. The MBA can be found online at http://www.mbaa.org.