New York, Sept. 1--Applications for U.S. home mortgages fell for the second consecutive week despite a steady decline in fixed mortgage interest rates in August.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications -- which includes both purchase and refinancing loans -- fell 4.5 percent to 722.5 in the week ended Aug. 26. In the previous week, the index fell 0.7 percent.
Fixed 30-year mortgage rates fell 5 basis points, or 0.05 of a percentage point, to an average of 5.73 percent, excluding fees, compared with 5.78 percent in the previous week. The 30-year rate, considered the industry benchmark, has steadily declined from 5.91 percent in the week ending Aug. 5.
The 30-year mortgage rate is currently below the 2005 high of 6.08 percent reached in late March and above the 2005 low of 5.47 percent of late June. It is also slightly higher than where it stood a year ago when it was 5.75 percent.
Fixed 15-year mortgage rates last week averaged 5.36 percent, down from 5.41 percent the previous week.
Rates on one-year adjustable rate mortgages (ARMs) increased to 4.88 percent last week from 4.84 percent one week earlier.
