Austin Kilgore | 01.07.09  www.dsnews.com

New mortgage applications decreased 8.2 percent, according to the Washington, D.C.-based Mortgage Bankers Association Market Composite Index.

The index, which measures loan application volume, was 1143.8 for the week ending January 2, down from 1245.7 a week earlier, and includes an adjustment for the short New Year holiday break.

Despite the slight drop, the rate is up 28.3 percent from the same week one year ago.

Refinance applications decreased 12.3 percent to 5904.5 from 6733.8 the previous week. Refinance applications were 79.8 percent of total volume, down from 82.9 percent during the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 0.9 percent from 0.8 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.07 percent from 5.03 percent, with points decreasing to 1.16 from 1.24 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.67 percent from 4.79 percent, with points decreasing to 1.16 from 1.26 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs decreased to 5.90 percent from 6.15 percent, with points decreasing to 0.31 from 0.44 (including the origination fee) for 80 percent LTV loans.