Mortgage Applications Fall

Mortgage application volume fell 10.6 percent on a seasonally adjusted basis to 591.4 compared with 661.7 the previous week, according to the Mortgage Bankers Association weekly survey.

Mortgage applications had risen after the U.S. government took over Fannie Mae and Freddie Mac, but in the wake of more bad economic news and rising interest rates both buyers and refinancers stepped back.

On an unadjusted basis the index decreased 11.1 percent compared with the previous week and was down 9.3 percent compared with the same week last year.

Refinance applications fell 11.2 percent and purchase applications declined 10 percent.

Meanwhile, mortgage rates jumped last week:

30-year fixed-rate mortgages increased to 6.08 percent from 5.82 percent.
15-year fixed-rate mortgages increased to 5.84 percent from 5.54 percent.
1-year ARMs increased to 7.01 percent from 6.95.

Source: Mortgage Bankers Association (09/24/2008)

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