Mortgage Refinancing Falls Substantially

Washington, DC, April 2, 2008--Mortgage applications fell 29 percent for the week ending March 28, due mostly to a drop in refinancing activity, according to the Mortgage Bankers Association.

The Refinance Index decreased 38.1 percent Purchase Index decreased 11.8 percent to 356.0 from 403.7 one week earlier. The Conventional Purchase Index decreased 11.8 percent while the Government Purchase Index (largely FHA) decreased 11.8.

The refinance share of mortgage activity decreased to 53.4 percent of total applications from 62.0 percent the previous week. Adjustable rate mortgage applications increased to 5.4 from 3.8 percent of total applications from the previous week.

The average 30-year fixed-rate mortgage rate increased to 5.75 percent from 5.74 percent.

The 15-year fixed-rate mortgage rate increased to 5.27 percent from 5.23 percent.