Mortgage Applications Rise 0.7%

By Amy Hoak, MarketWatch

RISMEDIA, Oct. 19, 2007-(MarketWatch)-Mortgage application volume increased a seasonally adjusted 0.7% last week, according to the Mortgage Bankers Association’s latest survey.

Applications were also 0.7% higher compared with the same week during 2006.

The volume of applications filed to refinance an existing loan was down 1.1% on a week-to-weak basis, while applications for loans to purchase homes rose a seasonally adjusted 2.1%. An adjustment was made to the figures to account for the Columbus Day holiday.

The four-week moving average for all loans was down 0.6%.

Refinancings accounted for 45.3% of overall mortgage application filings last week, down from 46.2% the previous week, according to the MBA. Adjustable-rate mortgages made up 13.5% of application volumes, off from 13.6%.

The average interest rate for the 30-year fixed-rate mortgage was 6.40% last week, unchanged from the previous week, while the 15-year fixed-rate mortgage averaged 6.09%, up from 6.03%.
The average rate for 1-year ARMs was 6.17%, up from 6.15%.

The MBA’s survey covers about half of all U.S. retail residential mortgage originations.

Amy Hoak is a MarketWatch reporter based in Chicago.