Mortgage Applications Take A Dip

U.S. mortgage applications declined recently due to reduced demand for home refinancing. Refinancing took a hit due to higher long-term interest rates.

The Mortgage Bankers Association's mortgage application index slipped 1.7%. A rise in applications to buy homes was overshadowed by the drop in refinancing applications. The Mortgage Bankers Association's purchase index rose 1.5%, but home refinancing fell 6.1%.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, rose 0.03% point to average 6.35%. Refinancing represented 38% of total mortgage applications, down from 39.7% the prior week.

On a four-week moving average, which smoothes out volatility, all three of the Mortgage Bankers Association's seasonally adjusted indexes have fallen. The mortgage applications index, also called the market index, is down 2.1%; the purchase index is off 0.3% and refinance index is down 4.3%.