Mortgage Applications Fall Despite Low Rates

Washington, DC, Sept. 29, 2010--Mortgage application volume declined last week for a fourth straight time, even though mortgage rates declined to the lowest on record, according to the Mortgage Bankers Association.

MBA's index fell 0.8% in the week ended September 24 to the lowest level in almost two months. Refinancing also dropped to a seven-week low, while purchase applications rose for the first time in three weeks.

Refinancing fell 1.6%, while purchase applications rose 2.4%.

The average rate on a 30-year fixed mortgage fell to 4.38%, the lowest in records going back to 1990.

The average rate on a 15-year fixed loan fell to 3.77% from 3.88%, also the lowest on record.

Refinancing made up 80.7% of all applications, down from 81.3%.