Mortgage Activity Slows as Refinancing Drops

Washington, DC, Oct. 1, 2008--Mortgage applications filed last week dropped a seasonally adjusted 23.0 percent from the previous week, the Mortgage Bankers Association said Wednesday.

Applications for the ended Sept. 26 were also lower than in the same week during 2007, down 28.4 percent, the  MBA said.

Applications to purchase a home were down a seasonally adjusted 10.9 percent, compared with the week before. Filings to refinance existing mortgages fell 34.7 percent on a week-to-week basis.

Refinancings made up 44.0 percent of all applications, down from 51.6 percent the previous week, with adjustable-rate mortgages accounting for 3.3 percent of filings, down from 4.0 percent.

A 30-year fixed-rate mortgage averaged 6.07 percent, off from 6.08 percent the previous week, while the average rate on a 15-year fixed-rate mortgage stood at 5.82 percent last week, off from 5.84 percent.