Mortgage Demand Dips Despite Low Rates

Washington, DC, Sept. 7, 2011 -- Demand for mortgages declined for a third straight week last week, according to the Mortgage Bankers Association.

MBA's mortgage applications index, which includes both refinancing and home purchase demand, dropped 4.9% in the week ending Sept. 2.

The refinancing application index fell 6.3% while requests for home purchases climbed 0.2%.

Fixed 30-year mortgage rates averaged 4.23%, down from 4.32% the prior week and the second lowest rate since the group began its survey nearly 22 years ago.

"Despite these rates, refinance application volume fell for the third straight week and is more than 35% below levels at this time last year," Mike Fratantoni, MBA's vice president of research and economics, said in a press release.

"Purchase application volume remains relatively flat at extremely low levels, close to lows last seen in 1996," he said.