Mortgage applications fell by 4.6% last week, according to the Mortgage Bankers Association. When compared to one year ago, mortgage applications are down 31.3%. The purchase index has declined 6.2%, to 19% lower than last year at this time. The refinance index fell 1.6% last week, 46% lower than last year. The decline in purchase applications has been steeper than the drop in U.S. home sales. New-home sales have fallen by 6% for the year. Existing home sales are down by 7%. Refinancings made up 35% of total applications for last week, only up slightly from 34% the week earlier. Compared to the refinancing boom of 2003 when refinancings accounted for over 80% of applications, the refinancing market is down. Adjustable-loans made up 29% of total applications. Mortgage rates decreased to a four-week low last week. The average rate on a 30-year fixed-rate mortgage was 6.73%, down from 6.81%. The 15-year fixed-rate averaged 6.38%, down from 6.40 the week prior. Adjustable-rate mortgages also saw declining interest rates. A one-year ARM fell to 6.28%, down from 6.41% the week prior. The MBA data was released after an industry survey showed that the confidence of U.S. home builders fell in July to a 14-year low. Home builder confidence dropped three points to 39 for July, according to the National Association of Home Builders on Tuesday. |
