Reply #9: US home loan applications fall 3rd straight week

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-15T120652Z_01_N153994_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, Feb 15 (Reuters) - U.S. mortgage applications fell for a third consecutive week as demand for loans to purchase homes dropped to its lowest level in over two years, an industry trade group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Feb. 10 decreased to 574.1, down 7.3 percent from the previous week's 619.3.

The MBA's seasonally adjusted purchase mortgage index, which is considered a timely gauge on U.S. home sales, fell 7.9 percent to 391.7 from the previous week's 425.1, its lowest level since the week ended Dec. 26, 2003, when it hit 390.1.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.25 percent, unchanged from the previous week. The 30-year rate, however, was at its highest level since the week ended Dec. 9, 2005, when it touched 6.28 percent.

The 30-year fixed-rate mortgage, the industry benchmark, is substantially above its 2005 low of 5.47 percent in late June of 2005, but hovering below its 6.33 percent high in the week of Nov. 11, 2005.

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The group's seasonally adjusted index of refinancing applications decreased 6.5 percent to 1,636.7 compared with 1,751.0 the previous week.

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