Mortgage Application Volume Falls, Despite Rates

Washington, DC, March 19, 2008--Mortgage application volume fell a seasonally adjusted 2.9 percent last week as interest rates on fixed-rate mortgages declined, according to the Mortgage Bankers Association.

Application volume fell 3.7 percent compared to the same week last year.

Purchase applications were off 1 percent in the week ended March 14 compared to the previous week. Refinancing applications dropped 4.6 percent.

The MBA's Government Purchase Index, made up of mostly FHA loan applications, increased 7.7 percent last week over the previous week, while the Government Refinance Index rose 11.4 percent.

Refinancings accounted for 49.7 percent of all loan applications, down from 50.6 percent the previous week. Adjustable-rate mortgages made up 7.9 percent of applications, down from 15.5 percent.

The average interest rate on the 30-year fixed-rate mortgage was 5.98 percent last week, down from 6.37 percent the prior week. The 15-year fixed-rate averaged 5.24 percent, down from 5.72 percent the previous week.

However, one-year adjustable rates rose to 6.95 percent, up from 6.72 percent the previous week.