Mortgage Applications Down

The MBA mortgage applications index fell 4.4% to 720.6% for the week ending July 23. The purchase index rose 2.0% to 172.3%, its second consecutive gain. Nevertheless, purchase applications are down more than 40% since the expiration of the homebuyers' tax credit at the end of April and remain at one of the lowest levels in the past 14 years. The refinance index tumbled 5.9% last week to 3918.1% but because of record low rates, has increased 85% since the end of April and is up 110.4% from its year ago level. Refinance activity accounts for nearly 80% of all new mortgage activity.