U.S. Home Mortgage Application Drops Last Week - MBA

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A new data released by industry group Mortgage Bankers Association (MBA) on Wednesday showed that the number of home mortgage applications in the U.S. dropped last week despite increased refinancing scheme.

The number of home mortgage applications in the U.S. dropped last week despite increased refinancing scheme, an industry report showed on Wednesday.

In a report, the Mortgage Bankers Association (MBA) said that the mortgage application index fell by 0.7 percent in the week ended March 11, which suggest lower demand for the coming spring season.

The mortgage application activity index includes both refinancing and new home purchase, the MBA said.

Meanwhile, the report also showed a 0.9 percent increase in refinancing application index – the second straight week of gain.

The MBA also said that loan applications for home purchases dropped by four percent during the period.

The industry group, at the same time, said that fixed 30-year mortgage rates only manage to post an average of 4.79 percent last week, down from the previous week’s 4.93 percent.

In a related development, the housing sector remained to be under constant stress as shown by the U.S. Commerce Department report.

According to the department, the number of new home construction fell to an annual rate of 479,000 or at least 22.5 percent drop from the previous month’s level –the lowest since April 2009.

Also, the number of new building application dropped to a record of 517,000 last month, down by at least 8.2 percent from January level – the lowest number of permits in records dating back to 1960.

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