Applications for US home mortgages decreased last week as a drop in home purchasing activity offset a marginal increase in refinancing, amid a rise in interest rates, an industry group said today.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity decreased 0.6 per cent to 727.9 in the week ended February 18th, adding to the 0.5 per cent decrease the week before.
The MBA's seasonally adjusted index of refinancing applications climbed 0.1 percent to 2532.0, adding to the 4.1 per cent gain the prior week.
The MBA's purchase index, a gauge of loan requests for home purchases, declined 1.3 per cent to 417.8, after dropping 4.8 per cent the previous week.
A sharp rise in interest rates may have dampened demand for mortgages. Fixed 30-year mortgage rates averaged 5.67 per cent last week, excluding fees, up 17 basis points from 5.50 per cent the previous week.