Mortgage applications down for second consecutive week

The number of home mortgage applications in the U.S. continued to drop for the second week in a row, for the week ending February 11, according to the Mortgage Bankers Association.

The MBA reported a 9.5 percent decline in its seasonally adjusted index, including both applications for new homes as well as those looking to refinance. For new home purchases alone, mortgage applications were down 5.9 percent.

The decline leaves mortgage demand at its lowest point since July 3, 2009, according to the group.

The group also reported a slight decline in the interest on fixed 30 year mortgage rates, which was 5.12 percent, 0.01 percent lower than the week before.

"Mortgage rates remained above 5 percent last week, up almost a full percentage point from their October lows, and refinance volume continued to drop. ... Buyers have not returned to the market as rising rates have reduced affordability, to some extent," Michael Frantantoni, MBA's vice president of research and economics, said.

Despite the decline for 30-year mortgages, the interest rate for 15-year fixed-rate mortgages increased from 4.29 percent to 4.34 percent, according to MBA.
 

More News