Mortgage activity falls despite low rates

January 27, 2010 - 0 comments

Washington -- The volume of applications for U.S. mortgages dropped 10.9 percent in a week on a seasonally adjusted basis, an industry group said Wednesday.

Both the Market Composite Index and the Refinancing Index increased in the week ending Jan 22, the Mortgage Bankers Association said.

"Although rates remain low, there appears to be a smaller pool of borrowers who are willing and able to refinance at today's rates," said MBA vice president of research and economics Michael Fratantoni.

During the week, the average interest rate for 30-year, fixed-rate mortgages rose from 5 percent to 5.02 percent with points dropping from 1.05 to 1, the organization said.

Rates for the average 15-year, fixed-rate mortgage rose from 4.33 percent to 4.34 percent. Points in 15-year, fixed-rate mortgages fell from 1.19 to 1.14.
For one-year adjustable rate mortgages, the average terms increased from 6.72 percent interest and 0.31 points to 6.84 percent interest with 0.33 points, the MBA said.