Mortgage application volume falls 6.2 pct.

[November 20, 2008]  WASHINGTON (AP) -- Mortgage application volume fell 6.2 percent during the week ended Nov. 14, according to the Mortgage Bankers Association's weekly application survey.

The trade group's application index slipped to 398.6 during the week, down from 425 a week earlier.

Refinance volume decreased 2.6 percent, while purchase volume declined 12.6 percent during the week. Refinance volume accounted for 49.9 percent of all applications, up from 45.1 percent the previous week.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 398.6 means mortgage application activity is 3.986 times higher than it was when the MBA began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50 percent of all residential retail mortgage originations each week.

The average rate for traditional, 30-year fixed-rate mortgages decreased to 6.16 percent from 6.24 percent. The average rate for 15-year fixed-rate mortgages, often a popular option for refinancing a home, decreased to 5.87 percent from 5.90 percent.

The average rate for one-year adjustable-rate mortgages increased to 6.8 percent from 6.77 percent.

[Associated Press]

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