Mortgage Applications Rise on Purchase Activity

Washington, DC, Nov. 26, 2008--Mortgage applications rose a seasonally adjusted 1.5% last week, due to a bump in loans sought for home purchases, the Mortgage Bankers Association reported on Wednesday.

Interest rates on fixed-rate mortgages fell during the week ended Nov. 21 compared with the prior week, with rates charged on one-year adjustable-rate mortgages rising

The volume of mortgage applications filed for the Nov. 21 week sank 21.9% compared with the same week in 2007, according to the MBA's weekly survey.

Applications for mortgages to buy homes rose a seasonally adjusted 5.3% on a week-to-week basis, while refinancing filings fell 2.1%.

The MBA's Government Purchase Index, made up mostly of loans backed by the Federal Housing Administration, rose 8.5%. Applications for conventional mortgages were up 3.8%.

Refinancings last week made up 49.3% of all mortgage activity, down from 49.9% the previous week.

Meanwhile, rates on 30-year fixed-rate mortgages averaged 5.99% last week, down from 6.16% the week before. The average for 15-year fixed-rate mortgages was 5.78%, down from 5.87%.