Refinance Applications Rise,
Offset Decline in New Mortgages
by Amy Hoak
From MarketWatch
November 01, 2007
CHICAGO (MarketWatch) -- The volume of mortgage applications filed last week increased a seasonally adjusted 3.8%, driven by a rise in refinancings, the Mortgage Bankers Association reported Wednesday.
Application volume for the week ended Oct. 26 was up 19.5% compared with the same week in 2006 on an unadjusted basis, according to the group's weekly survey.
For the second week in a row, an increase in refinance applications offset a decrease in applications for mortgages to buy homes. Applications to refinance existing loans rose a seasonally adjusted 9.2% on a week-to-week basis, while mortgage applications to purchase a home eased 0.7%.
The four-week moving average for all applications was up 1.7%.
Refinancings accounted for 49.6% of all mortgage applications last week, up from 47.0% the week before, the MBA said. Adjustable-rate mortgages made up 14.7%, higher than 14.2% in the previous week.
Average rates on 30- and 15-year fixed-rate loans decreased last week to 6.15% and 5.79%, respectively, down from 6.21% and 5.86% the previous week.
The rate on one-year ARMs averaged 5.93%, down from 6.10%.
The MBA survey covers about half of all U.S. retail residential mortgage originations.
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