Mortgage Applications Rise on More Refinancing

Washington, DC, May 14, 2008--Mortgage applications rose for a second consecutive week as home refinancing activities increased while interest rates dropped, according to the Mortgage Bankers Association.

The trade group said its seasonally adjusted index of mortgage applications rose 2.9 percent for the week ended May 9.

The MBA's purchase index dropped 0.7 percent. The index was also 12.4 percent below its year-ago level.

The group's seasonally adjusted index of refinancing applications jumped 6.5 percent and was up 14.5 percent from its year-ago level.

Fixed rate 30-year mortgages averaged 5.82 percent, down from 5.91 the previous week.

The four-week moving average of mortgage applicationswas down 2.7 percent.