U.S. mortgage applications fell last week to the lowest level in almost a year despite lower interest rates and fewer associated borrower costs, according to the Mortgage Bankers Association’s weekly survey.
The group’s seasonally adjusted mortgage application index fell 7.6 percent during the week ended December 21 to 603.8, the lowest point since falling to 575.6 in the week ended December 29, 2006.
The index plunged 19.5 percent the prior week, creating the largest back-to-back decline since April 2004.
Purchase applications dipped 6.6 percent, while applications to refinance a loan fell 8.5 percent to the lowest point since September.
The refinance share of mortgage activity decreased to 53 percent of total applications from 53.2 percent the previous week, while the share of adjustable-rate mortgages increased to 10.4 from 9.9 percent of total applications from the previous week.
Fixed-rate 30-year mortgages averaged 6.10 percent last week, down from 6.18 percent the prior week.
The average 15-year fixed mortgage fell to 5.66 from 5.78 the week before and the average rate for one-year ARMs decreased to 6.03 percent from 6.48 percent.
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