Loan Applications Take Another Dip

June 25, 2014

Applications for home mortgage fell 1 percent for the week ending June 20, the second consecutive week for a drop, after a sharp 9.2 percent decrease in applications the previous week, the Mortgage Bankers Association's seasonally adjusted weekly index showed.

The index reflects applications for both home purchases and refinancing. Broken out, applications for refinancing dropped 0.9 percent last week while applications for home purchases – viewed as a leading gauge of future home sales – dropped 1.2 percent.

Applications fell last week despite a drop in mortgage rates that lowered borrowing costs slightly. The MBA reported that the 30-year, fixed-rate mortgage averaged 4.33 percent last week, down from 4.36 percent the week before.

Source: “U.S. Mortgage Applications Fall in Latest Week: MBA,” Reuters (June 25, 2014)