Mortgage Applications decreased last week, as there was a slowdown in refinancing activity. The weekly application index was down 12.6 percent to 649.7 from 743.5 a week earlier, according to the Mortgage Bankers Association.
The index was adjusted for the week ended Feb 27, which was a shortened one because of the President's Day holiday. On an unadjusted basis, the index declined 2 percent, as compared to what it was in the previous week.
Moreover, borrowers sought home loans to refinance rather than buy new homes. About 66.9 percent of applications were for refinancing, which was slightly down from 69.7 percent in the previous week.
Mortgage rates, on the other hand, were found to be increasing marginally last week. 30-year fixed-rate mortgages rose to 5.14 percent from 5.07 percent and 15-year fixed-rate mortgages to 4.73 percent from 4.71 percent. 1-year ARMs remained unchanged at 6.13 percent.