Applications for Purchase Mortgages Tumble

Washington, DC, Nov. 12, 2009–Mortgage applications filed to purchase homes last week hit the lowest level in nearly nine years, the Mortgage Bankers Association reported Thursday.

Applications for loans to buy homes fell a seasonally adjusted 11.7% in the week ended Nov. 6 from with the previous week — bringing volumes to their lowest since December 2000.

Applications to refinance existing home loans, on the other hand, rose 11.3% on a week-to-week basis, the MBA said.

In total, application volumes increased a seasonally adjusted 3.2%.

Refinancings accounted for 71.5% of applications filed in the latest week, up from 66.1% the prior week.

The 30-year fixed rate mortgage averaged 4.9% last week, down from 4.97% the previous week. Fifteen-year fixed-rate mortgages, popular with homeowners seeking to refinance, averaged 4.33%, unchanged from the week before.