Mortgage Applications Fall Sharply

Mortgage applications declined 8.7 percent on a seasonally adjusted basis to 508.4 from 557.1 the previous week, according to the Mortgage Bankers Association’s weekly index.

(Realtor) -- On an unadjusted basis, the index decreased 9.6 percent compared to the previous week and was down 21.3 percent compared with the same week a year ago. This was the fourth week out of the last five that applications decreased with refinances falling 15 percent and purchases decreasing 4.3 percent. Potential homebuyers are apparently discouraged by rising interest rates: 30-year fixed-rate mortgages increased to 6.57 percent from 6.24 percent; 15-year fixed-rate mortgages increased to 6.14 percent from 5.78 percent; 1-year ARMs increased to 7.22 percent from 6.87 percent.