Mortgage activity dropped last month, according to the MBA, declining 3.4% (seasonally adjusted).
U.S. 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 MBA’s seasonally adjusted 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 seasonally adjusted 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.
Rates did moderate a bit this week, the 10Y bond yields dropped a bit, allowing the mortgage lenders a little more leeway.