Mortgage applications fall in Nov 2 week
NEW YORK (Reuters) - Applications for U.S. home mortgages fell for the first time in five weeks as a recent jump in loan refinancings came to a halt, an industry group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 1.6 percent to 670.6 in the week ended November 2.
The drop was led by the seasonally adjusted index of applications for home refinancings, which eased 3.2 percent to 2,176.1, the MBA said.
At the end of October, the index hit its highest level since March, suggesting that borrowers were scrambling to refinance some $650 billion in adjustable-rate mortgages before scheduled increases in monthly payments by the end of 2008, economists said.
Mortgage applications have been exaggerated in recent months as borrowers make multiple applications to overcome tighter lending standards. Economists expect foreclosures will continue to rise as many homeowners fail to refinance the ARMs to easier terms, or make the higher payments.
The gauge for home mortgage purchase applications slipped to 412.7 last week, compared with 412.9 in the previous week, the MBA said.
Fixed 30-year mortgage rates rose 1 basis point to 6.16 percent last week, the MBA said. The rate on 1-year adjustable mortgages increased to 5.94 percent from 5.93 percent.
