Mortgage Applications Fall as Rates Rise Slightly

Washington, DC, May 21, 2008--Mortgage applications last week dropped a seasonally adjusted 7.8 percent, compared with the previous week, the Mortgage Bankers Association said.

Compared to a year ago, applications were down 9.4 percent.
 
Refinancing applications fell 8.7 percent last week, compared with the previous week. Home-purchase applications declined a seasonally adjusted 6.9 percent.

The share of applications for refinance mortgages was 48.2 percent, down from 48.7 percent the previous week. The adjustable-rate mortgage share was 10.0 percent, up from 8.3 percent the previous week.

The average interest rate on a 30-year fixed-rate mortgage was 5.9 percent last week, up from 5.82 percent the previous week. The 15-year fixed-rate mortgage averaged 5.42 percent, up from 5.38 percent. And 1-year adjustable mortgages averaged 6.71 percent, up from 6.60 percent the previous week.