Purchase Applications Decline, Refis Rise

Mortgage applications to purchase homes declined 3.4 percent last week compared to the previous week on an unadjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchases declined 4.6 percent compared with the previous week and were down 38.6 percent from the same week a year ago.

The decline occurred despite unusually low interest rates that drove the refinance index up 17.1 percent to the highest level since May 15, 2009.

Average interest rates rose slightly from the week before:

• 30-year fixed-rate mortgages increased to 4.60 percent from 4.57 percent.
• 15-year fixed-rate mortgages increased to 3.99 percent from 3.95 percent.
• 1-year ARMs decreased to 6.90 percent from 7 percent.

Source: Mortgage Bankers Association (08/18/2010)