Mortgage Application Volume Falls

Washington, DC, June 9, 2010--Mortgage application volume last week fell a seasonally adjusted 12% from the previous week, the Mortgage Bankers Association reported Wednesday, as the refinancing surge sputtered and the index for home purchases hit another 13-year low.

Refinance activity dropped 14% in the week. Purchasing fell 5.7% in the week.

Michael Fratantoni, MBA's vice president of research and economics, said refinance applications dropped for the first time in a month despite historically low rates because those who qualify for refinancing have already done so.
The share of applications filed to refinance an existing mortgage fell to 72.2% of total applications from 73.8% the previous week.

The four-week moving average for all mortgage applications was down 0.7%.

Rates on 30-year fixed-rate mortgages averaged 4.81%, falling from 4.83%, while the average for 15-year fixed-rate mortgages rose to 4.26% from 4.24%.