Industry News

Borrowers hold off on real estate purchases

Refinancings gain market share

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Overall mortgage applications slipped 0.7 percent last week on a seasonally adjusted basis from the week before, as refinancings picked up for the second consecutive week, according to the Mortgage Bankers Association's weekly survey. The seasonally adjusted purchase index decreased by 2.2 percent to 488.4 from 499.3 the previous week whereas the refinance index increased by 1.2 percent to 2,313.9 from 2,285.5 one week earlier. The refinance share of mortgage activity increased to 43.7 percent of total applications from 42.4 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 28.1 percent of total applications from 28.9 percent the previous week. The ARM share is down from a 2005 high of 36.6 percent seen during the week of March 25. The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.78 percent from 5.79 percent. Points including the origination fee decreased to 1.2 from 1.22 for 80 percent loan-to-value ratio loan...