2009-Jun-24 - Week-to-week mortgage applications rise 6.6%: MBA

CHICAGO (MarketWatch) -- Mortgage applications filed last week increased a seasonally adjusted 6.6%, compared with the week before, as interest rates charged on fixed-rate mortgages dropped, the Mortgage Bankers Association said Wednesday.

Compared with a year ago, applications for the week ended June 19 were up an unadjusted 17.2%, the MBA's latest survey showed.

The most recent week-to-week, seasonally adjusted results from the Washington-based MBA's survey, which covers about half of all U.S. retail residential mortgage applications, represented a turnaround from activity seen the previous week. See full story.

Last week's applications to refinance existing home loans were up 5.9% from the week before, while filings for mortgages to buy homes increased a seasonally adjusted 7.3%, the MBA reported.

The four-week moving average tracking all mortgages was down 9.3%, reflecting recent weakness in refinancing activity.

Refinancings accounted for 54% of all applications filed last week, compared with 54.1% the week before, with adjustable-rate mortgage applications making up 4.1%, down from 4.3%.

Rates on 30-year fixed-rate mortgages averaged 5.44% last week, down from 5.50% the week before.

To obtain the rate, the mortgage required payment of an average 0.99 point. A point is 1% of the mortgage amount, charged as prepaid interest.

The average rate on 15-year fixed-rate mortgages also fell, down to 4.93% last week from 4.99% in the prior week, and required payment of an average 0.92 point.

And one-year ARMs averaged 6.54%, unchanged from the week before, with the required payment of an average 0.11 point.

Week-to-week mortgage applications rise 6.6%: MBA