Refinance Applications Rise 4% Last Week

By Amy Hoak, MarketWatch

RISMEDIA, Oct. 26, 2007-(MarketWatch)-The volume of mortgage applications filed last week rose just slightly, driven by an increase in refinance applications, the Mortgage Bankers Association said on Wednesday.

Total application volume was up a seasonally adjusted 0.03% last week, compared with the previous week. Volume was up 11.5% compared with the same week in 2006, according to the MBA’s weekly survey.

The volume of applications to refinance an existing loan increased 4.0% last week compared with the previous week. Mortgage applications to purchase a home decreased a seasonally adjusted 3.1% last week.

The four-week moving average for all loans was up 0.1%.

The share of mortgages for refinancing rose to 47.0% last week, up from 45.3% the week before. The share of adjustable-rate mortgages also rose, to 14.2% last week vs. 13.5%.

The average interest rate on the 30-year fixed-rate mortgage decreased last week to 6.21%, from 6.40% the previous week, according to the survey. The 15-year, fixed-rate mortgage averaged 5.86%, down from 6.09%. One-year adjustable-rate mortgages averaged 6.10%, down from 6.17%, according to the MBA.

The MBA survey covers about half of all U.S. retail residential mortgage applications.

Amy Hoak is a MarketWatch reporter based in Chicago.