Mortgage Application Volume Higher Last Week

Washington, DC, Jan. 5, 2011 -- Mortgage application volume rose last week after falling the week before, according to the Mortgage Bankers Association.

Activity rose 2.3% for the week ended Dec. 31 and dipped 3.9% in the prior week.

Refinancing application volume has been generally falling since October on rising interest rates.

The MBA expects total loan originations will drop to $967 billion this year, down 36% from 2010 and less than half that of 2009.

Fixed 30-year mortgage rates jumped to 4.93% in the week ending Dec. 24, the highest since May 7, before ending the year at 4.82%, the MBA said. The rate is three-quarters of a%age point higher since early October.

The MBA's seasonally adjusted index of refinancing applications index rose 3.9% in the latest week but fell 7.2% for the week ended December 24. The index of loans earmarked for home purchases fell 0.8% and rose 3.1% in those weeks.