Mortgage Applications Down on Less Refinancing

Washington, DC, April 6, 2011 -- Mortgage applications in the U.S. fell for a second straight week, according to the Mortgage Bankers Association.

MBA said applications decreased 2 percent in the period ended April 1. Refinancing fell 6.2 percent, while the purchase gauge rose 6.7 percent to the highest level this year.

Thirty-year fixed mortgage rates hovering near 5 percent are likely depressing refinancing, since most people able to get credit have already applied, MBA said.

The increase in purchases reflected a jump in demand for government loans as buyers tried to beat an April 1 increase in Federal Housing Administration insurance premiums, according to a press release.

The average rate on a 30-year fixed loan rose to 4.93 percent last week from 4.92 percent the prior week, the mortgage bankers group said. Borrowing costs have increased since reaching 4.21 percent in October, the lowest since the group’s records began in 1990.

The average rate on a 15-year fixed mortgage decreased to 4.14 percent from 4.16 percent.

The share of applicants seeking to refinance a loan declined to 61.2 percent from 64.3 percent.