Industry NewsMortgage

Refi applications plunge 30%

Demand at 7-month low

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Applications for mortgage refinancings fell 30 percent last week to their lowest level since November, the Mortgage Bankers Association said.The MBA's Weekly Mortgage Applications Survey for the week ending June 26 also showed a seasonally adjusted drop of 4.5 percent in purchase mortgage applications from the previous week.Total mortgage applications -- purchase and refinance -- were down a seasonally adjusted 18.9 percent from the week before. Looking back a year, mortgage applications were down 7.4 percent on a non-adjusted basis.Requests for refinancings made up 46.4 percent of applications, down from 54 percent the previous week. The MBA recently lowered its forecast for 2009 mortgage originations by more than $700 billion, saying rising interest rates and a slow start to the Obama administration's Making Home Affordable loan program have put a damper on a boom in refinancings (see story).Interest rates retreated some last week, but with no corresponding increase in demand for mor...