Despite low interest rates, the number of US mortgage applications fell last week, while demand for new mortgages declined for a fifth consecutive week, according to the Mortgage Bankers Association (MBA).
MBA’s seasonally adjusted index for home loan application activity, which includes both home purchasing demand and refinancing, fell 4.5 percent in the week ended 10 August.
At the same time, the number of mortgage requests for home purchases, which is an important indicator of home sales, fell two percent; while refinancing applications slid 5.1 percent.
Moreover, the refinancing share of total mortgage activity slipped to around 81 percent of applications from 81.2 percent the previous week. Nonetheless, 30-year fixed-rate loans are still at historical lows, averaging 3.76 percent.
MBA’s study covers 75 percent of all retail residential mortgage applications in the country.
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