Applications for Purchase Mortgages Tumble

Washington, DC, Nov. 12, 2009--Mortgage applications filed to purchase homes last week hit the lowest level in nearly nine years, the Mortgage Bankers Association reported Thursday.

Applications for loans to buy homes fell a seasonally adjusted 11.7% in the week ended Nov. 6 from with the previous week -- bringing volumes to their lowest since December 2000.

Applications to refinance existing home loans, on the other hand, rose 11.3% on a week-to-week basis, the MBA said.

In total, application volumes increased a seasonally adjusted 3.2%.

Refinancings accounted for 71.5% of applications filed in the latest week, up from 66.1% the prior week.

The 30-year fixed rate mortgage averaged 4.9% last week, down from 4.97% the previous week. Fifteen-year fixed-rate mortgages, popular with homeowners seeking to refinance, averaged 4.33%, unchanged from the week before.