Home Mortgage Applications Dip 7.8 Percent On Second Week Of May

May 21, 2008 1:08 p.m. EST

New York, NY (AHN) - The Mortgage Bankers Association's Weekly Mortgage Applications survey for the second week of May showed home mortgage applications dipped by 7.8 percent.

Because of the decline, its second lowest level in 2008, the MBA's seasonally adjusted index was placed at 621.6 for the week ended May 16. The index's bottom was 567 on the week ending April 25.

Meanwhile, the MBA's seasonally adjusted index of refinancing applications also registered an 8.7 percent slump to 2,210.5 for the same week.

While interest rates are relatively low, the non-stop rise in foreclosure proceedings have led legislators to rush laws that attempts to stabilize the slumped U.S. housing market. On Tuesday, the Senate Banking Committee approved a measure that would refinance loans to distressed borrowers whose home value are below the balance of their loans through a government-backed program.