U.S. Mortgage Applications Slip As Borrowing Costs Rise - MBA

U.S. mortgage applications declined last week, as falling demand to refinance home loans outweighed a rise in applications to buy homes, an industry group said Wednesday.

Borrowing costs increased for all loan types, with the average rate on 30-year fixed-rate loans climbing to a six-week peak.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications dipped 0.4% to 646.6 in the week ended Friday, April 6.

Thirty-year fixed home loan rates last week rose 0.03% to 6.16%, excluding fees, matching the rate of the Feb. 23 week, according to the Mortgage Bankers Association.

The MBA's seasonally adjusted purchase index rose 2.7% to 413.8 last week.

But the refinancing applications index dropped 4.0% to 2,015.0, its lowest level since mortgage rates reached their recent peak in late February.

On a four-week moving average, which smooths out volatility, the MBA said its market and refinancing measures declined and the purchase index was little changed.

On that basis, the seasonally adjusted market index was 1.6% lower at 659.8, the purchase index stood at 409.6 compared with 409.7, and the refinancing gauge was down 3.4% at 2,129.9.

Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

  • American universities produce the majority of the world's billionaires, according to this year's Wealth-X and UBS Billionaire Census report.

  • Tips for takeout?

    Our story this week on one man's food bonanza gave rise to the pragmatic if not really important question: Should you tip on take out orders?

  • Pablo Sandoval of the San Francisco Giants

    Batter up: Tucci and other upstart bat makers are challenging the Louisville Slugger in this year's World Series.

U.S. Video