Refinance Lending Down at Countrywide

One of the nation’s largest mortgage lenders, Countrywide Credit Industries Inc., said its June refinance lending fell for the first time this year as interest rates on 30-year fixed-rate mortgages rose from a two-year low in March.

The Calabasas-based firm reported a 9.8% drop in the volume of refinance lending last month to $5.5 billion from a record $6.1 billion in May. Thirty-year fixed rates rose in June to 7.24% from 6.89% in March, according to Freddie Mac.

Countrywide nevertheless posted a record $11.4 billion in total mortgage funding last month and exceeded its January 2001 record in home-purchase funding with $5.9 billion in loans.

“As mortgage rates rise, fewer people are eligible to refinance,” said Erik Sieracki, managing director of Countrywide. “The increase in our purchase activity is more than offsetting the modest decline in refinance activity.”

Countrywide shares rose 2 cents to close at $45 on the New York Stock Exchange.