US mortgage applications decreased last week - MBA
US mortgage applications decreased last week - MBA
Wed Mar 22, 2006 7:00 AM ET
NEW YORK, March 22 (Reuters) - U.S. mortgage applications fell last week to their lowest level this year despite a marked drop in interest rates, an industry trade group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended March 17 decreased 1.6 percent to 565.0 from the previous week’s 574.4, its lowest level so far this year.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.31 percent, down 0.11 percentage point from the previous week’s 6.42 percent level, a near four-year peak.
The group’s seasonally adjusted index of refinancing applications decreased 0.6 percent to 1,574.5 compared to 1,583.6 the previous week.
The MBA’s seasonally adjusted purchase mortgage index dropped 2.3 percent to 393.6 from the previous week’s 403.0. The index was only a few points above its two-year low of 391.7 reached during the week ended Feb. 10. The index was also below its year-ago level of 446.4.
The purchase index is considered a timely gauge on U.S. home sales.