Mortgage Applications Rise on Purchase Activity

Washington, DC, May 5, 2010--Mortgage applications last week increased 4% on a seasonally adjusted basis from one week earlier, according to the Mortgage Bankers Association.

The Refinance Index decreased 2.1% from the previous week and the seasonally adjusted Purchase Index increased 13.0% from one week earlier.

This is the third consecutive weekly increase in purchase applications and the highest Purchase Index recorded in the survey since the week ending Oct. 2.

"Purchase application activity continued to increase in the last week of the homebuyer tax credit program," said Michael Fratantoni, MBA's Vice President of Research and Economics.

The refinance share of mortgage activity decreased to 51.9% of total applications from 55.7% the previous week. This is the lowest refinance share since last July.

The rate for 30-year fixed-rate mortgages decreased to 5.02% from 5.08%.

The average rate for 15-year fixed-rate mortgages decreased to 4.34% from 4.38%