Despite Record Rates, Mortgage Applications Flat

Washington, DC, Aug. 11, 2010--Mortgage application volume rose by less than 1% in the first week of August, even as 30-year loan rates fell to 4.57%, the lowest in 20 years of record keeping by the Mortgage Bankers Association.

The rate was down from 4.60% the prior week and 5.38% a year ago, the industry group said on Wednesday.

Refinancings accounted for about 78% of all mortgage requests last week, continuing to far overshadow demand for loans to purchase homes.

The market index, which includes purchases and refinancings, climbed 0.6% last week, according to the MBA. The refinancing index rose 0.6% while purchase demand rose for the fourth straight week but by just 0.3%.

The average 15-year mortgage rate also fell last week from 4.03% to 3.95%, the lowest contract rate on record, the MBA said.