Mortgage Application Volumes Drop 6.2 percent
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- MortgageLoan.com | July 24, 2008
An increase in interest rates contributed to a decline in demand for mortgage application volumes which witnessed a 6.2 percent decrease in the week ending July 18, an industry trade group revealed on Wednesday.
The Mortgage Bankers Association (MBA) weekly application index declined to 489.2 during the week, from 522.2 a week earlier.
Average 30-year home loan rates jumped 0.37 percentage point in the week, surpassing the 6.57 percent rate in mid-June to match the rate posted in the July 20 week of 2007, the MBA revealed.
Refinance application volume dropped 5.6 percent, while purchase volume fell 6.7 percent on an adjusted basis.
Rising mortgage rates have been widely blamed for contributing to the worsening housing crisis.
The MBA's survey covers half of all U.S retail residential mortgage applications.
4.63%
4.54%
