Daily Real Estate News  |  September 30, 2009  |   Mortgage Applications Decline
Mortgage loan applications declined 2.8 percent last week on a seasonally adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the mortgage index decreased 3.1 percent compared to the previous week and was up 44.3 percent compared with the same week a year ago.

This is the third-straight week that mortgage rates have declined, but that didn’t appear to encourage more buyers. The purchase index was down 6.9 percent over the previous week.

"We're going to see another leg down, and if we lose the tax credit it will be a significant leg down," says John Burns, president of John Burns Real Estate Consulting in Irvine, Calif.

Average 30- and 15-year rates were below 5 percent:

• 30-year fixed-rate mortgages decreased to 4.94 percent from 4.97 percent.
• 15-year fixed-rate mortgages decreased to 4.34 percent from 4.41 percent.
• 1-year ARMs decreased to 6.40 percent from 6.52 percent.

Source: Mortgage Bankers Association (09/30/2009) and Reuters News, Lynn Adler (09/30/2009)