Mortgage Applications Fall

Despite the ongoing increase in rates, mortgage applications had been on the rise. Until recently. Based on figures released by the Mortgage Bankers Association, U.S. mortgage applications fell last week. They dragged down by a decline in nationwide home refinancing to a 16-month low - even as interest rates dropped.

The trade group said its seasonally adjusted index of application activity for the week ending on November 25 decreased 1.8% to 624.1, down from the previous week’s 635.4.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.20% last week, down 0.06 of a percentage point from the previous week’s 6.26%. It was the second decline in four weeks.

The MBA’s seasonally adjusted purchase mortgage index rose 0.8% to 476.2 from the prior week’s 472.3. The index is considered a timely gauge on U.S. home sales.

Meanwhile, the company’s seasonally adjusted index of refinancing applications dropped 6.3% to 1,484.3, compared with 1,584.1 in the previous week. The index fell for a sixth straight week, and volume was at its lowest level since the week ended June 25, 2004, when the index reached 1,386.9.