Mortgage Applications Up on Higher Refinancing

Washington, DC, Aug. 26, 2009--Mortgage applications filed last week increased 7.5% compared with the week before, boosted mainly by filings to refinance existing home loans, the Mortgage Bankers Association said Wednesday.

Refinancing applications rose 12.7% for the week ended Aug. 21 from the prior week -- the third increase for such applications over the last four weeks.

Overall filings had increased 5.6% in the week ended Aug. 14, data compiled by the Washington-based MBA showed.

Applications for mortgages to purchase homes were up 1.0% last week compared with the week before, due to increased demand for government mortgages, including those backed by the Federal Housing Administration.

This latest increase marks the fourth consecutive weekly gain for home-purchase applications -- a streak last seen in March, when interest rates on fixed-rate mortgages dropped and stayed below 5%.

Overall applications for the latest week were up 34.1% from the same week in 2008.

Refinancings made up 56.5% of all applications last week, up from 53.3% the week before. Adjustable-rate mortgage accounted for 6.5% of filings, unchanged from the week before.

According to the MBA survey, rates on 30-year fixed-rate mortgages averaged 5.24% last week, up from 5.15% the week before.

The average rate on 15-year fixed-rate mortgages stood at 4.58% last week, up from 4.52% in the week ended Aug. 14.