US Mortgage Applications Plunge

A completed house (rear) is seen behind the earthworks of a home currently under construction at the Mid-Atlantic Builder's 'The Villages of Savannah' development site in Brandywine, Maryland May 31, 2013. REUTERS/Gary Cameron Thomson ReutersA completed house is seen behind the earthworks of a home currently under construction in Brandywine

NEW YORK, Dec 3 Reuters) – Applications for U.S. home mortgages fell last week as refinancing applications dropped, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 7.3 per cent in the week ended Nov. 28.

The MBA’s seasonally adjusted index of refinancing applications fell 13.4 per cent, while the gauge of loan requests for home purchases, a leading indicator of home sales, rose 2.5 per cent.

Fixed 30-year mortgage rates averaged 4.08 per cent in the week, the lowest level since May 2013. They fell 7 basis points from 4.15 per cent the week before.

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

(Reporting by Caroline Valetkevitch)

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