Mortgage refis take a dive

Mortgage refinance applications dove a seasonally adjusted 20 percent in the week ending Sept. 6 from the week before with an index tracking them dropping to its lowest level since June 2009, according to a weekly survey from the Mortgage Bankers Association released today. The survey covers 75 percent of all U.S. residential mortgages.

Overall, mortgage applications were down a seasonally adjusted 13.5 percent last week from the previous week, with the index tracking purchase applications dipping a seasonally adjusted 3 percent.

Down from 61 percent the week before, refinance applications made up 57 percent of all mortgage applications last week, the lowest percentage split since April 2010.

The average contract interest rate for 30-year fixed-rate mortgages with loan balances of $417,000 or less increased to 4.8 percent last week from 4.73 percent the previous week. Those 30-year fixed-rate mortgages with loan balances of $417,000 or greater jumped to 4.84 percent from 4.71 percent.

Source: Mortgage Bankers Association