Mortgage applications ease

WASHINGTON (AP) -- Mortgage application volume drop 1.6 percentage during the hebdomad ending Nov. 2, according to the trade grouping Mortgage Bankers Association's weekly mortgage applications study released Wednesday.

The MBA's application index drop to 670.6, from 681.7 the former week.Video

CNN's Muhammad Ali Velshi and Christine Romans talking to Anirvan Banerji of the Economic Cycle Research Institute.

A diminution in refinance volume pushed overall application volume lower. Refinance volume declined 3.2 percentage during the week, while purchase applications drop 0.05 percent. Refinance applications accounted for 49.1 percentage of entire mortgage applications during the week.

The index peaked at 1,856.7 during the hebdomad ending May 30, 2003, at the tallness of the lodging boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first hebdomad the Master in Business tracked application volume. A reading of 670.6 agency mortgage application activity is 6.706 modern times higher than it was when the Master in Business began tracking the data.

The study supplies a snapshot of mortgage loaning activity among mortgage bankers, commercial Banks and thrifts. It covers about 50 percentage of all residential retail mortgage origins each week.

Application volume declined slightly as involvement rates showed relatively small movement. The norm involvement charge per unit for a traditional, 30-year fixed-rate mortgage increased to 6.16 percentage during the hebdomad ending Nov. 2, from 6.15 percentage the anterior week.

The norm involvement charge per unit for one-year adjustable-rate mortgages increased to 5.94 percentage from 5.93 percentage a hebdomad earlier.