Refinancing Drop Drives Decrease in Latest Week's Apps

Lately, it has been as refinancings go, so goes the total number of applications for new mortgages and the past week was no exception. The number of refinancings declined by 18.1% on a seasonally adjusted basis to 960.6 from 1172.2, according to the Market Composite Index, an overall measure of mortgage applications, for the week ended April 24. The index is compiled from the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The Refinance Index fell by 21.9% to 5108.2 from 6540.7 in the previous week. The seasonally adjusted Purchase Index decreased 0.6% to 251.6 from 253.0 one week earlier. The Conventional Purchase Index decreased 1.4% while the Government Purchase Index increased 0.8%. On an unadjusted basis, the MCI decreased 17.4% compared with the previous week and increased 62.7% compared with the same week one year earlier. Refinancings decreased to 75.3% of total applications from 79.7% the previous week, while adjustable-rate mortgages accounted for 2.1% of applications, an increase from 1.4% the week prior, the MBA said. There was a decrease in the average contract interest rate for 30-year fixed-rate mortgages to 4.62% from 4.73%, with points (including the origination fee) increasing to 1.14 from 1.12 for loans with 80% loan-to-value ratios, the association said. The MBA can be found online at http://www.mortgagebankers.org.