Mortgage Applications Fall on Rising Rates

Washington, D.C., July 23, 2008 — Mortgage application volume fell 6.2 percent last week, according to the Mortgage Bankers Association weekly survey.

The Refinance Index decreased 5.6 percent and the seasonally adjusted Purchase Index decreased 6.7 percent. The Conventional Purchase Index decreased 6.3 percent while the Government Purchase Index (largely FHA) decreased 7.7 percent.
 
The refinance share of mortgage activity increased to 39.4 percent of total applications from 39.2 percent the previous week. The adjustable-rate mortgage (ARM) share decreased to 8.5 from 9.1 percent of total applications from the previous week.

The rate for 30-year fixed-rate mortgages increased to 6.59 percent from 6.22 percent, while the average rate for 15-year fixed-rate mortgages increased to 6.10 percent from 5.74 percent