mortgage applications slide for fifth straight week
David Ryder/Bloomberg via Getty Images
By Luciana Lopez

NEW YORK -- Applications for U.S. home loans tumbled in the latest week, led by a sharp slide in refinancing applications, data from an industry group showed Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, sank 12.8 percent in the week ended Nov. 29.

The week's results included an adjustment for the Thanksgiving holiday last Thursday, the group said.

The data marked the fifth straight weekly drop for the index, taking it to its lowest level since early September.

The fall in mortgage applications comes as investors try to gauge when the U.S. Federal Reserve might exit its bond-buying program.

The Fed has said it would begin to scale back its $85 billion a month in purchases of Treasuries and mortgage-backed securities when policy makers are convinced of a steady, self-sustaining recovery.

But data on the world's biggest economy have been mixed, leaving investors uncertain about the future path of U.S. monetary policy.

MBA data showed 30-year mortgage rates rose 3 basis points in the latest week to 4.51 percent.

The refinancing index sank 17.5 percent while the purchase index, a leading indicator of home sales, fell 4.1 percent.

The mortgage survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.


Increase your money and finance knowledge from home

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

What is Inflation?

Why do prices go up?

View Course »

Add a Comment

*0 / 3000 Character Maximum

2 Comments

Filter by:
liverystable

We will be able to get mortgages again as soon as the interest rate goes high enough, The banks were using Harp as the bait the last couple of months. Its interesting that the rates go up even though the feds are still keeping the rates to the bank at about Zero, Are the bailed out banks once again taking advantage of the public or am I missing something

December 05 2013 at 2:07 AM Report abuse rate up rate down Reply
1 reply to liverystable's comment
setanta54s_back

yeah ,yer missing that THE AMOUNT OF THE BAILOUT WITH THE INTEREST WAS PAID BAAAACK.
some banks have NOT yet paid back WHAT THEY OWED BUT with the interest tacked ON this bs WAS PAID BACK ALREADY.
now WHO SETS THE RATES for HOUSING LOANS ?
why IT DEPENDS amd ALWAYS DID upon WHERE YOU GO FOR YOUR LOAN.
FHA sets their OWN rates etc etc aNd geeeeeeeeeeeeee THEY ARE and remain THEEEEEEEEEEEEEEEE PROBLEM with THEIR ZERO DOWN BS.
and of course !!!!!!! their LOANS ARE BACKED !!!!!!!!!!!! by the freeekin taxpayers.

December 07 2013 at 1:43 PM Report abuse rate up rate down Reply