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NEW YORK — Applications for U.S. home mortgages declined last week, with loans for purchases of single-family homes falling to their lowest level in nearly eight years, an industry group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage application activity fell 6.2 per cent to 398.6 in the week ended Nov. 14.
The index was dragged lower as the MBA's gauge of loan requests earmarked for home purchases tumbled 12.6 per cent to 248.5, the lowest level since the last week of December 2000. The index for refinancing applications edged higher to 1,281.2 from 1,248.4 in the previous week.
The U.S. housing slump, now in its third year, will likely linger as long as the mix of falling home prices and risky mortgages keep foreclosure rates rising, economists said. The financial markets crisis that erupted in September and October has worsened the outlook, leading banks to pull back on already tight credit for mortgages and other loans.
Fixed 30-year mortgage rates averaged 6.16 per cent in the week, down 8 basis points from the prior week, the MBA said.
