Mortgage purchases up, refis down as tax credit expiration approaches: MBA

The rate of mortgage applications for the week ending April 23 decreased 2.9 percent from the previous week on a seasonally-adjusted basis, according to the Mortgage Bankers Association’s weekly survey. But while the overall rate of mortgage applications declined, this was largely due to a drop in refinancings, not a decline in demand for new mortgage purchases, the report says. The MBA’s purchase index increased 7.4 percent, as the homebuyer tax credit expiration approached, while the refinance index dropped 8.8 percent. The average interest rate on 30-year mortgages stayed relatively flat, increasing to 5.08 percent from 5.04 percent week-over-week. TRD