Mortgage Application Volume Down 14.2%

From Realtor Magazine Online, Daily Real Estate News April 23, 2008

Mortgage applications fell 14.2 percent last week as interest rates soared, according to the Mortgage Bankers Association weekly mortgage applications survey.

For the week ending April 18, mortgage application volume declined to 637.6 from the previous week's 743.4. On an unadjusted basis, the index decreased 13.4 percent compared with the previous week and was down 3.2 percent compared with the same week a year ago.

Much of the decline was in refinance applications, which fell 20.2 percent, pushing the refinance share of mortgage activity to 49.2 percent from 53.5 percent the previous week. Purchase applications declined 6.4 percent.

Overall, the decrease in demand came in response to rising interest rates:

- 30-year fixed-rate mortgages increased to 6.04 percent from 5.74 percent;
- 15-year fixed-rate mortgages increased to 5.6 percent from 5.27 percent;
- 1-year ARMs decreased to 6.93 percent from 7.02 percent.

Source: Mortgage Bankers Association (04/23/2008)