Mortgage applications fell last week as refis dropped: MBA

NEW YORK (Reuters) - Applications for home mortgages fell last week as demand for refinancing dropped for the fourth week in a row, though interest in purchases rose, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 4.3 percent in the week ended Aug 24.

The seasonally adjusted index of refinancing applications tumbled 5.7 percent. But the gauge of loan requests for home purchases, a leading indicator of home sales, gained 1.4 percent.

The refinance share of total mortgage activity slipped to 79 percent of applications from 80 percent the previous week.

Fixed 30-year mortgage rates averaged 3.80 percent, down 6 basis points from 3.86 percent.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

(Reporting by Leah Schnurr: Editing by Diane Craft)