Mortgage Applications Drop to 2008 Low

The Mortgage Bankers Association's leading index of mortgage activity dropped to its lowest level this year.

The application volume fell 11.1 percent in the week ending April 25 to 567 from 637.6 the previous week.

Refinance volume fell 16.7 percent, while purchase application volume decreased 4.8 percent during the week. Refinance applications accounted for 45.7 percent of total application volume.

The drop in applications follows data Tuesday that showed foreclosure filings more than doubled last quarter from a year earlier, adding to inventories and exacerbating price declines.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50 percent of all residential retail mortgage originations each week.