Mortgage Applications Down on Less Refinancing

Washington, DC, June 27, 2012 -- Mortgage application volume fell last week as refinancing applications declined, according to the Mortgage Bankers Association.

MBA said its index of mortgage application activity, which includes both refinancing and home purchase demand, fell 7.1% in the week ended June 22.

Refinancing applications decreased by 8.3%, while purchase loan requests fell by 1.4%.

The refinance share of mortgage activity fell to 79% of applications from more than 81% the week before.

MBA attributed the decline to a fall-off in refinance applications for government-backed loans.

Fixed 30-year mortgage rates averaged 3.88% in the week, a gain of a single basis point from 3.87 the week before.