Applications for U.S. home loans drop as mortgage rates fall
(Reuters) – Applications for U.S. home loans dipped slightly in the latest week, as a drop in demand for purchase loans outweighed an increase in refinancing demand, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 0.4 percent in the week ended September 27.
That follows a gain of 5.5 percent in the week ended September 20.
The figures come in the first full week of data after the Federal Reserve decided not to slow its bond-buying program. The Fed’s decision to keep buying $85 billion per month in Treasuries and mortgage-backed securities helped take yields on Treasuries, which are used as a benchmark in the mortgage market, to multi-month lows.
