Mortgage applications fall 6.2% as rates rise - Jul. 23, 2008

WASHINGTON (AP) -- Mortgage application volume declined 6.2% during the week ending July 18, according to the trade group Mortgage Bankers Association's weekly application survey.

The MBA's application index declined to 489.6 during the week, from 522.2 a week earlier.

Refinance application volume declined 5.6%, while purchase volume fell 6.7%, on an adjusted basis.

Refinance applications accounted for 39.4% of all applications.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 489.6 means mortgage application activity is 4.896 times higher than it was when the MBA began tracking the data.

The average rate for traditional, 30-year fixed-rate mortgages rose to 6.59% from 6.22% during the week ending July 11.

The average interest rate for 15-year fixed-rate mortgages - a popular option for refinancing a home - rose to 6.10% from 5.74%.

Rates for one-year adjustable-rate mortgages remained unchanged at 7.16% from the prior week.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week. 

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[Via Home Mortgage Rates and Real Estate News]