Mortgage Applications Fall as Buyers Are Wary

Washington, DC, April 23, 2008--Mortgage applications fell last week to the lowest level in almost four months, as both purchasing and refinancing activity fell.

The Mortgage Bankers Association's index declined 14.2 percent, the lowest level since the week ended Dec. 28. The purchase index fell 6.4 percent last week and the refinancing index plummeted 20.2 percent.

Homebuyers are waiting for prices to drop further and banks have made it harder to qualify for financing after a surge in subprime mortgage defaults and foreclosures.

The share of applications for refinancing dropped to 49.2 percent from 53.5 percent.

Today's report showed the average interest on a 30-year fixed loan jumped to 6.04 percent last week, the highest in six weeks, from 5.74 percent the previous week.

The average rate on a 15-year fixed mortgage increased to 5.6 percent from 5.27 percent.