Mortgage Application Volume Falls 4.6 Percent

Applications for home mortgages slipped for a second consecutive week to a seasonally adjusted 4.6 percent as borrowing rates crept higher according to figures published by the Mortgage Bankers Association for the week ending May 23, 2008.

The Refinance Index fell 8.9 percent to 2, 103.5 from 2,210.5 the previous week, the MBA said.

The average interest rate for 30-year fixed rate mortgages rose from 5.9 percent to 5.96 percent, the organization reported. For a 15-year fixed rate mortgage, the rate rose to 5.49 percent from 5.42 percent.

The adjustable-rate mortgage (ARM) share of activity decreased to 9.3 percent from 10.0 percent of total applications from the previous week.

U.S home prices that fell a record 14.1 percent last quarter are expected to drop another 10 percent through next year as the market "painfully" clears the overhang of homes for sale, economist from Lehman Brothers said in a report on home prices on Tuesday.