Rising Rates Slow Mortgage Application Volume

Washington, DC, Sept. 24, 2008--Mortgage application volume retreated to sluggish levels last week as rising interest rates limited refinancing activity, according to the Mortgage Bankers Association.

MBA said its seasonally adjusted index of mortgage application activity dropped 10.6 percent in the week ended Sept 19.

The MBA's seasonally adjusted index of refinancing applications declined 11.2 percent last week as the average 30-year mortgage rate surged 0.26 percentage point to 6.06 percent, the MBA.

The MBA index of loan requests for home purchases fell 10 percent.