As interest rates fall mortgage applications increase in US

As the Mortgage Bankers Association data showed applications filed last week raised a seasonally adjusted 6.6%, compared with the week before, as interest rates charged on fixed rate mortgages fell.

According to the MBA`s latest survey, applications for the week ended June 19 were up an unadjusted 17.2%, compared with a year ago. And last week's applications to refinance existing home loans accounted for 5.9% from the week before, while filings for mortgages to buy homes rose a seasonally adjusted 7.3%.

Besides, the four-week moving average tracking all mortgages fell 9.3%, reflecting recent weakness in refinancing activity.

Additionally, refinancings amounted to 54% of all applications filed last week, compared with 54.1% the week before, with adjustable-rate mortgage applications making up 4.1%, down from 4.3%.

Rates on 30-year fixed-rate mortgages averaged 5.44% last week, compared with 5.50% the week before. Thus, the mortgage required payment of an average 0.99 point to get the rate. A point is 1% of the mortgage amount, charged as prepaid interest.

The average rate on 15-year fixed-rate mortgages also dropped, down to 4.93% last week from 4.99% in the previous week, and required payment of an average 0.92 point. And one-year ARMs averaged 6.54%, unchanged from the week before, with the required payment of an average 0.11 point.