New mortgage applications, refis down: report

New mortgage applications and refinancings were down the week ending June 4, according to the Mortgage Bankers Association’s weekly market survey. Applications dropped 12.2 percent week-over-week, while the purchase index dropped 5.7 percent, bringing the rate of new mortgage purchases down 35 percent from last month. Refis, meanwhile, dipped 14.3 percent from last week. Michael Fratantoni, a vice president with the MBA, said that while mortgage rates have stayed relatively flat — with the average interest rate on a 30-year mortgage dropping to 4.81 from 4.83 the previous week — the demand for refis has dried up. “Refinance applications dropped this past week for the first time in a month,” Fratantoni said. “Despite the historically low rates, many homeowners have already refinanced recently, remain underwater on their mortgages, have uncertain job situations, or have damaged credit following this downturn, and therefore may not qualify to refinance.” TRD