Refinances Decline

Refinances Decline as Rates Rise Overall, mortgage applications declined 3.5 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey, but the decrease was primarily in refinances because of rising interest rates.The seasonally adjusted purchase index actually increased 1.1 percent, the third gain in the last four weeks, while the refinance index fell 7.2 percent.On an unadjusted bases, the weekly mortgage index, which measures loan application volume, decreased 3.7 percent from the previous week, but was up 16.1 percent compared with the same week a year ago.Rising rates put refinancers in a wait-and-see mode. Here's a roundup of rate increases:
30-year fixed-rate mortgages increased to 5.38 percent from 5.17 percent
15-year fixed-rate mortgages increased to 4.71 percent from 4.60 percent
1-year ARMs increased to 6.71 percent from 6.67 percent.Source: Mortgage Bankers Association (08/12/2009)