Industry NewsMortgage

Mortgage applications plummet

Rates ease, but applications down 24.5 percent

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Applications for mortgage loans for the week ending Feb. 6 were down 24.5 percent from the previous week and 43.9 percent from a year ago, with significant declines in both refinancings and purchase mortgages, the Mortgage Bankers Association said today.The association's Weekly Mortgage Applications Survey showed applications for refinancings fell 30.3 percent from a week ago, while applications for purchase loans were down 9.8 percent on a seasonally adjusted basis. Applications for conventional purchase loans fell 11.1 percent, and applications for government-backed loans (largely FHA) were down 7 percent.Applications for refinance loans made up 66.7 percent of all applications, down from 73.2 percent the week before. Adjustable-rate mortgage (ARM) loans accounted for 2.5 percent of applications, up from 2.1 percent the week before.Applications were down despite easing rates on 30-year fixed-rate mortgages, which decreased to an average of 5.19 percent from 5.28 percent, with points ...