Refinancing Down Sharply

The Market Composite Index, an overall measure of mortgage applications, fell to 635.4 for the week ending November 18, down from 657.6 a week earlier as a 7% drop in refinancing reduced loan application volume, according to the Mortgage Bankers Association.The MBA's seasonally adjusted home purchase index fell slightly to 472.3 from 477.9 a week earlier, while the refinancing index declined to 1584.1 from 1702.4 a week earlier. Moreover, the refinancing index was down 17% compared to four weeks earlier. The refinancing share of mortgage applications dipped to 39.9% of total applications from 40.4% the previous week. The adjustable-rate share of activity rose to 33.2%, from 32.9% the previous week. The Mortgage Bankers Association can be found online at www.mortgagebankers.org.