Mortgage Applications Rise as Loan Rates Increase

Washington, DC, June 11, 2008--Mortgage applications filed in the week ended June 6 rose 10.9 percent on a seasonally adjusted basis compared to the final week of May, the Mortgage Bankers Association said in its weekly survey.

The higher volume for both new mortgages and refinancings came as interest rates rose on fixed- and adjustable-rate mortgages.

However, total application volume was down 16.5 percent compared with the same week in 2007.

Refinancing applications increased 8.4 percent on a week-to-week basis, while filings for mortgages to purchase homes rose a seasonally adjusted 12.8 percent the MBA said.
The four-week moving average for all loans was down 2.8 percent, reflecting weakness in refinancing filings.

Refinance applications made up 39.8 percent of all mortgage activity as tracked by the MBA, down from 40.6 percent the previous week.

Rates for 30-year fixed-rate mortgages averaged 6.24 percent last week, up from 6.17 percent the previous week, while the average on 15-year fixed-rate mortgages climbed to 5.78 percent from 5.7 percent.