Mortgage Applications Drop on Less Refinancing

Washington, DC, May 28, 2008--Mortgage applications fell 4.6 percent last week due to a drop in refinancing activity, the Mortgage Bankers Association said.

Refinance applications decreased 8.9 percent during the week ended May 23, compared with the week before.

Applications for purchase mortgages rose a seasonally adjusted 0.1 percent on a week-to-week basis.

Overall, applications were down 7.5 percent compared with the same week in 2007.

Refinance applications made up 46.1 percent of all applications last week, down from 48.2 percent the previous week. Applications for adjustable-rate mortgages also fell, accounting for 9.3 percent of filings as opposed to 10 percent the previous week.

The interest rate charged on 30-year fixed-rate mortgages averaged 5.96 percent last week, up from 5.90 percent the previous week.