Mortgage Applications Down on Less Refinancing

Washington, DC, April 29, 2009--Mortgage application volume last week fell a seasonally adjusted 18.1% compared with the week befor, even as interest rates charged on fixed-rate mortgages fell, the Mortgage Bankers Association reported Wednesday.

The 30-year fixed-rate mortgage averaged 4.62% for the week ended April 24, down from 4.73% the previous week, according to the MBA's weekly survey.

Fifteen-year fixed rate mortgages carried an average 4.45% rate, off slightly from the prior week's 4.46%. One-year adjustable-rate mortgages averaged 6.23%, up from 6.19%.

The fall in mortgage applications was due primarily to a decrease in refinancings, down 21.9% on a week-to-week basis. Filings for mortgages to purchase homes were off a seasonally adjusted 0.6%.

Applications to refinance existing mortgages made up 75.3% of all filings last week, down from 79.7% the previous week, while adjustable-rate mortgages accounted for 2.1% of volumes, up from 1.4%.