Mortgage Applications Down Despite Low Rates

Washington, DC, Oct. 5, 2011 -- Mortgage applications fell 4.3% last week, according to the Mortgage Bankers Association.

The refinance index fell 5.2% from the previous week.

The purchase index fell 1.7% compared with the previous week and was 12.1% lower than the same week last year.

"Interest rates continued to fall last week, driven by the latest Federal Reserve actions to invest in longer-term Treasury and mortgage securities, but potential borrowers largely remained on the sidelines," said Mike Fratantoni, MBA's vice president of research and economics.

Refinance activity declined to 79.1% of total applications, down from 79.7%.

The average 30-year, fixed-rate mortgage rate fell to 4.18% from 4.24%, while the 15-year rate fell to 3.49% from 3.46%.