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August 30, 2014

Mortgage Applications Drop for the Week

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Mortgage Applications Drop for the Week

Mortgage applications reversed course last week, following a recent high set for the year with mortgage applications for home purchases, the Mortgage Bankers Association reports. 

Loans for home purchases -- viewed as a leading indicator of future home sales -- dropped to its lowest level since early November, the MBA reports. The drop followed a five-week climb in applications.  

The index for mortgage applications, which include both refinancing and home purchase demand, dropped 12.3 percent for the week ending Dec. 14. Most of that drop was led by a decrease in refinancing applications, which fell 13.8 percent for the week. Meanwhile, loan demand for home purchases dropped 4.8 percent from its high point of the year that was reached the previous week.

Mortgage rates were on the rise slightly last week, moving up three basis points from the week prior, to average 3.50 percent. For the previous week, 30-year fixed-rate mortgages averaged 3.47 percent, the lowest on record, the MBA reported. 

Source: “Mortgage Applications Drop in Latest Week: MBA,” Reuters (Dec. 19, 2012)

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