Mortgage Applications Rise on Purchase Activity

Washington, DC, April 9, 2008--Mortgage application volume increased 5.4 percent for the week ending April 4, according to the Mortgage Bankers Association.

For a change, the increase was due to higher volume for purchase mortgages rather than refinancing activity.

The association's Refinance Index increased 3.4 percent and the seasonally adjusted Purchase Index increased 8.1 percent.

The Conventional Purchase Index increased 6.1 percent while the Government Purchase Index (largely FHA) increased 15.2 percent.

The refinance share of mortgage activity decreased to 52.2 percent of total applications from 53.4 percent the previous week.

The average interest rate for 30-year fixed-rate mortgages increased to 5.78 percent from 5.75 percent, and the average interest rate for 15-year fixed-rate mortgages increased to 5.39 percent from 5.27 percent.

The average interest rate for one-year adjustable mortgages increased to 7.06 percent from 7.00 percent.