Mortgage applications fall; rates ease: MBA

Reuters News
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Posted: Apr 11, 2012 7:03 AM

NEW YORK (Reuters) - Applications for home mortgages faded last week after as demand for refinancing declined, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2.4 percent in the week ended April 6.

The MBA's seasonally adjusted index of refinancing applications slid 3.1 percent. The gauge of loan requests for home purchases fared better, edging down only 0.5 percent.

Purchase applications had climbed for the previous two weeks.

The refinance share of total mortgage activity eased for the eighth week in a row to 70.5 percent of applications from 71.2 percent the week before. It was the lowest refinance share since late July, the MBA said.

Fixed 30-year mortgage rates averaged 4.10 percent, down 6 basis points from 4.16 percent the prior week.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

(Reporting By Leah Schnurr; Editing by Leslie Adler)