Mortgage Applications Fall Despite Lower Rates

Washington, DC, Sept. 30, 2009--Mortgage applications fell 2.8% last week compared with the week before, despite more favorable mortgage rates, the Mortgage Bankers Association reported Wednesday.

Applications were down an unadjusted 44.3% for the week ended Sept. 25 from the same week in 2008.

Refinancings fell 0.8% on a week-to-week basis as filings for mortgages to purchase homes dropped 6.2%.

In the week ended Sept. 18, the survey data showed overall application filings up 12.8% on a seasonally adjusted basis from a week earlier.

Applications to refinance existing home loans accounted for 65.3% of all activity last week, up from 63.8% the week before. Adjustable-rate mortgages made up 6.2%, down from 6.7%.

The interest rate charged on 30-year fixed-rate mortgages averaged 4.94% last week, down from 4.97% the previous week.

It was a similar story for 15-year fixed-rate mortgages, the average rate for which fell to 4.34% from 4.41%.