Mortgage Applications Fall For Second Week

In the United States, mortgage applications fell by 0.6 percent in the week ended December 17th, following a 4 percent drop in the previous week.

According to data from the Mortgage Bankers Association, applications to purchase a home decreased by 3.3 percent, while applications to refinance a home loan increased by 2.2 percent.

The 30-year fixed mortgage rate, on the other hand, fell by three basis points to 3.27 percent, the lowest level in four weeks.

In contrast to a decline in conventional and government buy applications, the average purchase loan grew for the second consecutive week and now stands at $416,200 – the second-highest sum ever.

The increased loan size is a sign that more activity is taking place at the higher end of the lending spectrum.