Daily Real Estate News  |  October 22, 2008  |   Mortgage Applications Fall Despite Rate Drop
Mortgage applications, which have been on a roller coaster for weeks, declined 16.6 percent last week compared with the previous week, with the index falling from 489.3 to 408.1 on a seasonally adjusted basis, according to the Mortgage Bankers Association.

On an unadjusted basis, the index decreased 25 percent compared with the previous week and was down 44 percent compared with the same week a year ago. These results include an adjustment for the Columbus Day holiday.

Refinance applications fell 23.5 percent, while purchase applications declined 10.9 percent.

Rates were high at the beginning of the week, but by the end they were on the decline:

30-year fixed-rate mortgages decreased to 6.28 percent from 6.47 percent;
15-year fixed-rate mortgages decreased to 6.05 percent from 6.17 percent
1-year ARMs increased to 6.97 percent from 6.67 percent.

Source: Mortgage Bankers Association (10/22/2008)