Impac Mortgage Holdings (IMH)

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Mortgage application volume declines as rates rise

Mortgage application volume falls during week ended June 13 as interest rates rise sharply


WASHINGTON (AP) -- Mortgage application volume fell 8.7 percent during the week ended June 13, according to the Mortgage Bankers Association's weekly application survey.
The MBA's mortgage application index fell to 508.4 during the week, from 557.1 the previous week.

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Refinance application volume tumbled 15 percent, while purchase activity declined 4.3 percent during the week. Refinance applications accounted for 37.4 percent of all applications -- the lowest level all year.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 508.4 means mortgage application activity is 5.084 times higher than it was when the MBA began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50 percent of all residential retail mortgage originations each week.

Application volume declined as interest rates rose. The average rate for traditional, 30-year fixed-rate mortgages rose to 6.57 percent during the week ended June 13, from 6.24 percent the previous week.

Rates for 15-year fixed-rate mortgages, a popular option for refinancing a home, rose to 6.14 percent from 5.78 percent.

The average rate for one-year adjustable-rate mortgages jumped to 7.22 percent from 6.87 percent.