Mortgage application volume falls 9.3 percent

The MBA's application index hit its lowest point of the year, falling to 461.3, down from 508.4 a week earlier.

Refinance volume fell 12.1 percent during the week, while purchase volume declined 7.4 percent. Refinance applications accounted for 36.3 percent of total mortgage applications, compared with 37.4 percent the previous week.

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 461.3 means mortgage application activity is 4.613 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 fell despite a drop in interest rates. The average rate for traditional 30-year fixed-rate mortgages fell to 6.39 percent from 6.57 percent a week earlier.

The average rate for 15-year fixed-rate mortgages, often a popular option for refinancing a home, fell to 5.95 percent from 6.14 percent.

Rates for one-year adjustable-rate mortgages fell to 7.09 percent from 7.22 percent.