Mortgage applications fall

According to the weekly survey from the Mortgage Bankers Association, mortgage applications have seen a dip.

On a seasonally-adjusted basis, the overall number of mortgage applications dropped by 6.3 percent. Mortgage applications were up 16.1 percent compared to the same time in 2008 on a seasonally-unadjusted basis.

Applications for mortgage refinancing also fell during the time of the survey. Previously, mortgage refinancing accounted for 55.5 percent of all mortgage activity and is now down to 52.6 percent. The refinance index, which tracks the number of mortgage refinance applications, fell by 10.9 percent.

Changes in mortgage interest rates varied depending on the type of mortgage. The average rate on a 30-year fixed mortgage increased from 5.31 percent to 5.36 percent, with points falling from 1.18 to 0.93.

For 15-year fixed mortgages, the average interest rate fell to 4.75 percent, down from 4.8 percent, with points climbing from 1.03 to 1.14.

The average interest on a one-year, adjustable-rate mortgages increased from 6.5 percent to 6.6 percent, with points declining from 0.11 to 0.09.

News about mortgage rates comes after a joint announcement from the U.S. Census Bureau and the Department of Housing and Urban Development that new, single-family housing sales climbed 11 percent in June.

U.S. Under Secretary for Economic Affairs Rebecca Blank said the rise was evidence that consumers are taking advantage of government tax incentives intended to help them manage money.