Mortgage Application Volume Up on More Refinancing

Washington, DC, Sept. 23, 2009--Mortgage application volume rose 12.8% last week from the the week before, boosted by greater activity in refinancings, the Mortgage Bankers Association reported on Wednesday.

The survey also showed that the average interest rate on 30-year fixed-rate mortgages dropped below 5% for the first time since the middle of May in the week ended Sept. 18.

The seasonally adjusted 12.8% increase last week was a reversal from the 8.6% drop seen in overall filings for the week ended Sept. 11.

In the latest week, applications filed to refinance home loans increased 17.4% from the week before, as applications for mortgages to purchase homes were up a seasonally adjusted 5.6%, driven mainly by an increase in filings for government-insured loans, including those backed the Federal Housing Administration.

Government-insured mortgages made up 45.7% of all purchase applications last week -- the highest proportion since November 1990.

Refinance applications accounted for 63.8% of all applications, up from 61% the previous week, while adjustable-rate mortgages rose to 6.7% from 6.0%.

Thirty-year fixed-rate mortgages carried an average rate of 4.97% last week, down from 5.08% the previous week. The average rate for 15-year fixed-rate mortgages stood at 4.41%.