Adjustable-Rate Mortgage

Mortgage Applications Drop As Refi Activity Freezes Up 

Application activity for mortgages fell sharply last week, dropping as rates on adjustable rate mortgages appear to have soared. The Mortgage Bankers Association reported Wednesday that its composite index of mortgage loan application volume was 652.5 for the week ending November 23, 2007 — a decrease of 4.3 percent on a seasonally- and holiday-adjusted basis from one week earlier. The overall drop was driven by a sharp 15.3 percent drop in refinancing applications, according to MBA data, even while purchase application activity increased 6.1 percent.