Mortgage Applications Down as Rates Rise

Washington, DC, Oct. 19, 2011 -- Mortgage application volume last week declined 15% from the prior week, the Mortgage Bankers Association said.

Refinance activity fell 17%, according to the MBA's weekly survey, while purchasing declined by a seasonally adjusted 8.8% during the week ended Friday.

The purchase index reached its lowest level since December 1996 as both government and conventional purchases slumped.

The share of refinance applications fell to 77.6% of total applications from 79.1% the previous week.

The average rate on 30-year fixed-rate mortgages rose to 4.33% from 4.25%, while rates for 15-year fixed-rate mortgages rose to 3.61% from 3.53%.