Mortgage Applications Rise on Refinancing

Washington, DC, Oct. 15, 2008--Mortgage applications filed last week increased 5.1 percent compared with the week before, reflecting an increase in refinancing activity, the Mortgage Bankers Association reported on Wednesday.

But while lower interest rates charged on mortgages initially enticed some applicants to move ahead with refinancings, an upturn in rates caused activity to slow at the end of the week, the MBA said.
 
Overall, applications volume fell 17 percent compared to the same week in 2007, the MBA said.

Refinancing filings rose 12.5 percent on a week-to-week basis, while applications to purchase homes were down a seasonally adjusted 0.3 percent.
 
Refinancings made up 46.4 percent of all mortgage applications filed last week, up from 43.4 percent the week before.

The rate charged on 30-year fixed-rate mortgages averaged 6.47 percent last week, up from 5.99 percent the week before, while 15-year fixed-rate mortgages had an average rate of 6.17 percent last week, up from 5.71 percent.