Mortgage Applications Fall on Less Refinancing

Washington, DC, June 18, 2008--Mortgage applications fell 8.7 percent last week as refinancing activity dropped 15 percent, according to the weekly Mortgage Bankers Association Survey.

The index was down 21.3 percent compared with the same week one year earlier.

Applications to purchase homes decreased 4.3 percent.

The refinance share of mortgage activity decreased to 37.4 percent of total applications from 39.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.7 percent from 10.3 percent of total applications from the previous week.

The average interest rate for 30-year fixed-rate mortgages increased to 6.57 percent from 6.24 percent, while the interest rate for 15-year fixed-rate mortgages increased to 6.14 percent from 5.78 percent.

The average interest rate for one-year ARMs increased to 7.22 percent.