Real estate refinancings plummet

Overall mortgage applications dropped 6.6 percent last week on a seasonally adjusted basis from the week before, with refinancings taking the biggest hit, according to the Mortgage Bankers Association's weekly survey.

The seasonally adjusted purchase index decreased by 3.4 percent to 483.1 from 500.3 the previous week, while the refinance index decreased by 10.5 percent to 2,106.6 from 2,353.7 one week earlier.

The refinance share of mortgage activity decreased to 43.9 percent of total applications from 45.6 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 28.8 percent of total applications from 29.8 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.85 percent from 5.81 percent one week earlier. Points including the origination fee decreased to 1.19 from 1.21 for 80 percent loan-to-value ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.44 percent from 5.38 percent one week earlier. Points including the origination fee decreased to 1.23 from 1.25 for 80 percent loan-to-value ratio loans.

The average contract interest rate for one-year adjustable-rate mortgages increased to 5.02 percent from 4.94 percent one week earlier. Points including the origination fee increased to 1.01 from 1 for 80 percent loan-to-value ratio loans.

Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry. The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

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