Mortgage Applications Up on Refinancing Activity

Washington, DC, July 16, 2008--Mortgage applications filed last week rose 1.7 percent over the previous week, as homeowners continued to refinance, according to the Mortgage Bankers Association.

However, applications were down 17.4 percent compared with the same week in 2007.

Refinance applications increased 6.9 percent for the week ended July 11 compared to the previous week, as homeowners took advantage of falling mortgage interest rates.

Applications for mortgages to purchase a home, however, were down a seasonally adjusted 1.7 percent on a week-to-week basis.
The four-week moving average for all mortgages was up 0.7 percent.

Refinance applications accounted for 39.2 percent of all filings last week, up from 37.3 percent the previous week, while adjustable-rate mortgages made up 9.1 percent of applications, down from 10 percent.

Rates on 30-year fixed-rate mortgages averaged 6.22 percent last week, down from 6.43 percent the previous week, the MBA survey found.

Average rates on 15-year fixed-rate mortgages fell to 5.74 percent, down from 5.94 percent.