More Buyers, Fewer Refinancers, Says MBA

Washington, DC, May 14, 2009--Mortgage application volume fell to the lowest level since mid-March, as refinancing dipped. However, applications to purchase homes rose slightly, the Mortgage Bankers Association said.

Near record-low mortgage rates and a 30 percent price drop by some measures from the 2006 peak are luring buyers -- mostly those who benefit from a first-time buyer federal tax credit and those secure in their jobs.

The MBA said its applications index that includes purchase and refinance loans fell 8.6 percent last week.

While refinance applications fell 11.2 percent, the lowest since mid-February, the trade group's purchase loan index climbed 0.5 percent. The last time purchase requests were higher was in the first week of April.

Borrowing costs bumped around near record lows.

The average 30-year mortgage rate slipped 0.03 percentage point to 4.76 percent and hovered slightly above the low of 4.61 percent set in late March.