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Mortgage applications at lowest mark of '
07
Weekly activity index falls more than 5 percent, even as
interest rates tumble, industry trade group reports.
NEW YORK (Reuters) -- U.S. mortgage applications dropped more than 5 percent last week, hitting their lowest level this year, even as interest rates fell, an industry trade group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, for the week ended Feb. 16 fell 5.2 percent to 606.6
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.19 percent, down 0.05 percentage point from the previous week. Interest rates were slightly below year-ago levels of 6.22 percent.
The MBA's seasonally adjusted purchase index fell 4.8 percent to 381.4, its lowest since the week ended Oct. 27, 2006, when it stood at 375.6. The index was also below its year-ago level of 408.7.
The purchase index is considered a timely gauge of U.S. home sales.
The group's seasonally adjusted index of refinancing applications slid 5.4 percent to 1,921.1. A year earlier, the index stood at 1,571.4.
The refinance share of applications decreased to 44.9 from 46.1 percent the previous week. Fixed 15-year mortgage rates averaged 5.88 percent, down from 5.94.
Rates on one-year adjustable-rate mortgages, or ARMs, increased to 5.81 percent from 5.80.
The ARM share of activity was unchanged at 21.2 percent.
The MBA's survey covers about 50 percent of all U.S. retail residential loans. Respondents include mortgage banks, commercial banks and thrifts.