Mortgage Application Volume Declines

Washington, DC, Dec. 21, 2011 -- Mortgage application volume fell 2.6% from the prior week, the Mortgage Bankers Association said Wednesday.

Refinance activity slipped 1.6%, while purchase applications fell by a seasonally adjusted 4.9% during the week ended Friday.

"Remarkably low rates are not enough, as many homeowners continue to hold back due to lack of equity in their properties, poor credit and a weak job market," MBA vice president Michael Fratantoni said.

The share of applications filed to refinance an existing mortgage rose to 80.7% of total applications, a high for the year, up from 79.7% the previous week.

The average rate on 30-year fixed-rate mortgages with conforming loan balances fell to 4.08% from 4.12%.