Mortgage Applications Down on Higher Rates

Washington, DC, Nov. 23, 2010 -- Mortgage application volume dropped last week to the lowest level in four months as interest rates rose, according to the Mortgage Bankers Association.

The MBA said its seasonally adjusted index of mortgage applications, which includes loans for home purchases and refinancings, fell 14.4 percent to 713.6 in the week ended Nov. 12, the lowest since the July 9 week.

Rates for 30-year fixed rate mortgages surged to a two-month high of 4.46 percent in the week, up from 4.28 percent in the previous period. 

"Rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed's" program, known as quantitative easing, Michael Fratantoni, the MBA's vice president of research and economics, said in a statement.

The MBA's seasonally adjusted index of refinancing applications slumped 16.5 percent to 3,831.0.