Home loan application volume drops second consecutive week

June 3, 2005 WASHINGTON -- According to the Mortgage Bankers Association's weekly index, applications for home loans declined for the second consecutive week. The report clearly reflects fewer home purchase loan originations as well as a decline in refinancing.

The MBA's overall index of mortgage applications declined 1.1 percent to 778.4 for the week ending June 24. By way of comparison, however, it should be noted that the applicant index is up 35 percent from the same week one year prior.

Last week the average for 30-year fixed-rate home loans dropped to 5.47 from 5.63 percent the previous week. One year ago the tally landed it at 6.21 percent.

With rates lower recently, fewer applicants are indicating interest in adjustable-rate mortgages, or ARMs. The index for last week shows that the share of applications for ARM loans fell to 30 percent from 30.7 percent the previous week.

As far as refinancing is concerned, the market took a ding with their share dropping to 45.4 percent of total applications from 45.6 percent the previous week. - Article by Stockton Marquette for CMR Home Loan original news.

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