Industry News

Real estate refinancings fall 9.6%

Lower interest rates impact new purchases only

Overall mortgage applications last week fell 3.9 percent on a seasonally adjusted basis from the week before, taken lower by a significant decline in refinancings, according to the Mortgage Bankers Association's latest survey. The seasonally adjusted refinance index decreased by 9.6 percent to 1,749.6 from 1,935.3 the previous week, while the purchase index increased by 1.3 percent to 406.7 from 401.4 one week earlier. The refinance share of mortgage activity decreased to 46.9 percent of total applications from 48.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 24.5 from 25.5 percent of total applications from the previous week and is now at its lowest level since October 2003. The average contract interest rate for 30-year fixed-rate mortgages remained at 6.13 percent -- a 10-month low -- with points including the origination fee increasing to 0.97 from 0.95 for 80 percent loan-to-value ratio loans. Points, which are fees charged by...

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