The Wall Street Journal-20080214-Mortgage Applications Decline

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Mortgage Applications Decline

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Mortgage applications decreased a seasonally adjusted 2.1% last week compared with the previous week, as mortgage interest rates broadly increased, according to the Mortgage Bankers Association's most recent survey.

Applications were up an unadjusted 65% in the week ended Feb. 8 compared with the same week a year earlier, the Washington-based industry group reported.

Mortgage applications to refinance an existing loan were down 3% last week, compared with the previous week, according to the MBA survey. Applications to purchase a home eased a seasonally adjusted 0.3%.

The four-week moving average for all loans was up 3.9% on a seasonally adjusted basis, reflecting improvement in refinancing filings.

Refinancings accounted last week for 67.4% of all applications, down from 69.2% the previous week. Adjustable-rate mortgage applications increased to 9.9%, up from 8.8% the previous week.

The interest rate on a 30-year fixed-rate mortgage averaged 5.72% last week, up from 5.61% the previous week. The 15-year fixed-rate mortgage also rose, averaging 5.18%, up from 5.09%.

One-year ARMs averaged 5.72% last week, up from 5.62% the previous week.

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