Mortgage Applications Fall Even as Rates Decline

Washington, DC, June 1, 2011 -- Applications for U.S. home mortgages fell last week as refinancing declined, according to the Mortgage Bankers Association.

MBA said its index of mortgage application activity fell nearly 4% in the week ended May 27.

Refinancing applications fell 5.7%, even as interest rates declined.

"The last time mortgage rates were this low, refinance volume was more than twenty% higher," Mike Fratantoni, MBA's vice president of research and economics, said in a statement.

"It is likely that many borrowers still cannot qualify to refinance given the lack of equity in their homes."