New York, NY, August 10--Applications for home mortgages fell last week, its third consecutive drop, as refinancing activity waned and interest rates reached four-month highs, industry group figures showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity fell 0.9 percent to 745.0 in the week ended Aug. 5, adding to the previous week's 0.3 percent loss. The four-week moving average is down 1.5 percent to 763.1 from 774.9.
Fixed 30-year mortgage rates, the benchmark for the mortgage industry, averaged 5.91 percent last week, excluding fees, up 8 basis points, or 0.08 of a percentage point, from 5.83 percent the previous week.
It was also the highest rate since the week ended April 8 when 30-year mortgages hit 5.95 percent.
The 30-year rate is still below the 2005 high of 6.08 percent reached in late March. But in a break with recent trends, the rate now stands higher than the year-earlier level. It was 5.80 percent in early August 2004.
Last week's slide in mortgage applications was in the refinancing sector. The MBA's seasonally adjusted index of refinancing applications also fell for a third consecutive week, dropping 3.3 percent to 2176.5 after falling 3.0 percent the prior week.
Purchasing activity, however, rose for a second consecutive week.
The MBA's purchase index, a gauge of loan requests for home purchases, increased 0.9 percent to 498.8, adding to the previous week's 1.9 percent gain.
Fixed 15-year mortgage rates last week averaged 5.49 percent, up 8 basis points from 5.41 percent the previous week.
Rates on one-year adjustable-rate mortgages (ARMs) increased to 4.88 percent last week from 4.78 percent one week earlier.
