Mortgage Applications Continue Decline

Washington, D.C., December 19, 2007--Mortgage applications tumbled 19.5 percent from the previous week but were up 1.7 percent from year ago levels, according to the Mortgage Bankers Association weekly survey.

The Refinance Index decreased 27.3 percent from the previous week and the seasonally adjusted Purchase Index decreased 10.6 percent.

The refinance share of mortgage activity decreased to 53.2 percent of total applications from 57.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 9.9 from 9.4 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 6.18 percent from 6.07 percent, with points decreasing to 1.12 from 1.17 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.78 percent from 5.72 percent, with points increasing to 1.10 from 1.01 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.48 percent from 6.31 percent, with points decreasing to 0.95 from 0.97 (including the origination fee) for 80 percent LTV loans.