Mortgage Applications Fall Despite Lower Rates

Washington, DC, Nov. 19, 2008--Mortgage applications fell a seasonally adjusted 6.2% last week from the prior week, even as interest rates moved lower, according to the Mortgage Bankers Association.

Application volume for the week ended Nov. 14 was down 41.3% on an unadjusted basis compared with the same week in 2007. The MBA's weekly survey covers about half of all U.S. retail residential mortgage applications.

Mortgage applications to purchase homes were down a seasonally adjusted 12.6% on a week-to-week basis, the MBA said. The four-week moving average for such mortgages was down 2.7%.
 
Meanwhile, applications to refinance existing mortgages rose 2.6%, compared with the previous week. The four-week moving average for refinancings was up 2.5%.
 
Refinancings made up 49.9% of all mortgage applications last week, up from 45.1% the previous week. Applications for adjustable-rate mortgages accounted for 2.6%, up from 2.3%.

Rates charged on 30-year fixed-rate mortgages decreased to an average 6.16% last week, down from 6.24% the previous week. The average on 15-year fixed-rate mortgages eased to 5.87% from 5.90%.