Mortgage Application Activity Falls Flat

Features Reuters

Applications for home mortgages tumbled last week, with demand for new loans down for the fifth week in a row as interest rates held steady, an industry group said on Wednesday.

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The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 4.5% in the week ended Aug 10.

The gauge of loan requests for home purchases, a leading indicator of home sales, dropped 2.0%. The measure of applications for refinancing fared even worse and was down 5.1%.

The refinance share of total mortgage activity eased to about 81% of applications from 81.2%the week before.

Fixed 30-year mortgage rates were unchanged but still at historically low levels at an average 3.76%.

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