On Wednesday, the Mortgage Bankers Association reported that the number of people applying for home loans fell. The group said that its seasonally adjusted index of mortgage application activity for the week ended June 2 fell 1.4% to 534.4 from the previous week's 541.9.

The borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.60%, down 0.06 of a percentage point from the previous week. The MBA's seasonally adjusted purchase mortgage index rose slightly to 395.6 from the previous week's 395.5. The index is considered a reliable gauge of U.S. home sales.

The MBA's seasonally adjusted index of refinancing applications fell 3.8% to 1356.0 from 1409.0 the previous week. The refinance share of mortgage activity decreased to 34.2% of total applications, from 34.9% last week. The percentage of adjustable-rate mortgage activity decreased to 29.4% of applications, from 30.7% prior.

Moreover, low mortgage rates have been behind the major U.S. housing boom during the last five years. Fixed 15-year mortgage rates increased to 6.23% from 6.22. Rates on one-year adjustable-rate mortgages decreased to 6.05% from 6.09%. The MBA's survey covers about 50% of residential mortgage bankers and thrifts.

By M. Sese
http://realestatepress.org