Mortgage Applications Slip Lower
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The number of applications for mortgages dropped 0.9% last week as interest rates bounced off a five-month low, the Mortgage Bankers Association reported Wednesday.
The number of applications for home purchases fell 1.6% to the lowest number since November 2003.
Applications for refinancing an existing loan inched higher, to a five-month high.
Applications are down 22.4% from a year earlier, a reflection of the weaker real-estate market.
Loans to refinance existing mortgages accounted for 41.5% of total applications last week, up from 40.6% the week earlier. It’s the highest share for refinancings since February.
Adjustable-rate mortgage applications increased to 26.8% of total loans, up slightly from 26.4% the previous week.
The average rate for a 30-year fixedrate mortgage rose to 6.39% from 6.38%,a while the average for a 15-year fixed, a popular refinancing option, rose to 6.06% from 6.04%. The rate on a one-year ARM averaged 5.97%, up from 5.91%. Interest rates had fallen to the lowest since March the previous week.
