Mortgage Application Volume Falls on Fewer Refi's

Washington, DC, Jan. 27, 2010--Mortgage application volume last week fell 10.9% from the week before, the Mortgage Bankers Association reported Wednesday.

"Refinance activity fell substantially last week," said Michael Fratantoni, MBA's vice president of research and economics, in a news release.

"Although rates remain low, there appears to be a smaller pool of borrowers who are willing and able to refinance at today's rates."

Applications to refinance existing home loans fell 15.1% for the week ended Jan. 22, compared with the previous week, while applications for mortgages to purchase homes also fell, off a seasonally adjusted 3.3%.

Refinancings made up 67.6% of all applications filed last week, down from 71.7% the previous week.

Rates for 30-year fixed-rate mortgages averaged 5.02% last week, up from 5% the previous week, while 15-year fixed-rate mortgage carried a 4.34% average rate, up from 4.33%.