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Mortgage applications slide by double digits

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Home loan application volume sank 11.1 percent last week on a seasonally adjusted basis from one week earlier despite a drop in interest rates, the Mortgage Bankers Association reported today. According to the trade group, the decrease was led by a 16.7 percent drop in the index that tracks refinancings, followed by a 4.8 percent decline in purchase loan applications. Economists believe that many would-be buyers are waiting for home prices to fall even more to avoid taking a loss after purchase.As a result, the refinance share of loan applications fell to 45.7 percent from 49.2 percent at mid-month, while the adjustable-rate mortgage (ARM) share slipped to 5.9 percent from 6.6 percent. The average rate for 30-year fixed-rate mortgages dipped to 6.01 percent last week from 6.04 percent; the average rate on 15-year fixed loans declined to 5.53 percent from 5.6 percent; and the average one-year ARM rate decreased to 6.86 percent from 6.93 percent. The points (loan fees expressed ...