Refis Continue to Boost MBA App Index

Refinancings are still driving gains in the Mortgage Bankers Association's Market Composite Index. The overall measure of mortgage applications increased 5.3% on a seasonally adjusted basis to 1172.2 from 1113.2 during the week ended April 17, according to the MBA's Weekly Mortgage Applications Survey. The increase in refis happened even though there was a slight increase in the average contract interest rate for 30-year fixed-rate mortgages. The rate inched up to 4.73% from 4.70% but points (including the origination fee) decreased to 1.12 from 1.23 for loans with 80% loan-to-value ratios, according to the association. On an unadjusted basis, the index increased 5.3% compared with the previous week and increased 76.9% compared with the same week one year earlier. The Purchase Index decreased 4.2% to 253.0 from 264.1 one week earlier on a seasonally adjusted basis, while the Refinance Index increased 7.7% to 6540.7 from 6071.7 the week prior. Refinancings increased to 79.7% of total applications from 77.8% the previous week, while adjustable-rate mortgages accounted for 1.4% of applications, down from 1.5% the week prior, the MBA said. The MBA can be found online at http://www.mortgagebankers.org.