New York, November 23, 2005--Mortgage applications fell last week, dragged down by a slump in home refinancings which hit a 16-month low as interest rates remained close to their highest levels this year, industry trade group figures showed on Wednesday.
The Mortgage Bankers Association said its index of mortgage application activity for the week ended November 18 declined to 635.4, 3.4 percent below the previous week's level.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.26 percent last week, down 0.07 percentage point from the previous week's 6.33 percent, a 17-month high.
Last week's interest rate decline was the first slide in the 30-year fixed rate in four weeks. However, the rate was still substantially above its 2005 low of 5.47 percent in late June.
The MBA's purchase mortgage index fell 1.2 percent to 472.3. The index is considered a timely gauge on U.S. home sales.
The group's index of refinancing applications dropped 6.9 percent to 1,584.1.
The refinancing index is down 17.4 percent compared with four weeks ago, and volume was at its lowest level since the week ended June 25, 2004 when the index reached 1,386.9, the MBA said.
