Mortgage Application Volume Declines

Washington, DC, Dec. 8, 2010 -- Mortgage volume fell last week, as demand for refinancings continues to decline although purchase applications rose for the third consecutive week, according to the Mortgage Bankers Association.

The trade group said its market composite index fell 0.9% for the week ended Dec. 3 on a seasonally adjusted basis. Unadjusted the index rose 22.8% from the prior week.

However, the purchase index rose another 1.8% last week while refinancings dropped 1.4%. The purchase index is at highest level since early May and the refinancing index is at its lowest point since June.

The average interest rate for a 30-year fixed mortgage has risen steadily for about a month and is now at 4.66%, according to the MBA, up from 4.56% the week before. The average rate for a 15-year fixed mortgage also rose last week to 3.98% from 3.91% a week earlier.