U.S. mortgage applications slip in latest week: MBA

NEW YORK Wed Feb 26, 2014 7:08am EST

Newly constructed single family homes are shown for sale in San Diego, California March 25, 2013. REUTERS/Mike Blake

Newly constructed single family homes are shown for sale in San Diego, California March 25, 2013.

Credit: Reuters/Mike Blake

Related Topics

NEW YORK (Reuters) - Applications for U.S. home mortgages fell, including both new purchases and refinancings, in the latest week, 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 8.5 percent to 348.5 in the week ended February 21.

The data come a day after a closely-watched housing survey showed U.S. home price gains slowed in December, underscoring a loss of momentum in the housing recovery.

The MBA index hit its lowest level since December 2000 at the end of last year, soon after the U.S. Federal Reserve announced it would start reducing its $85 billion per month bond-buying program as the economy grows strong enough to stand on its own.

The interest rate on fixed 30-year mortgages averaged 4.53 percent last week, up 3 basis points from the previous week and at the highest since the week ending January 17.

The MBA's seasonally adjusted index of refinancing applications fell 11.4 percent. The gauge of loan requests for home purchases, a leading indicator of home sales, fell 3.5 percent.

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

(Reporting by Luciana Lopez; Editing by Diane Craft)

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article 

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.