Mortgage Applications Fall To Lowest Level of Year

Washington, DC, July 30, 2008--Mortgage application volume fell 14.1 percent during the week ending July 25 to its lowest level of the year as refinancing activity plunged, according to the Mortgage Bankers Association's weekly application survey.

Volume fell even as interest rates on fixed-rate mortgages declined from sharp increases a week earlier.

Refinance volume decreased 22.9 percent during the week, while purchase application volume fell 7.8 percent. Refinance applications accounted for 35.2 percent of total application volume during the week.

The average rate for traditional, 30-year fixed-rate mortgages fell to 6.46 percent from 6.59 percent the previous week. Rates for 15-year fixed-rate mortgages fell to 5.98 percent from 6.10 percent.

The average rate for one-year adjustable-rate mortgages rose to 7.25 percent from 7.16 percent a week earlier.