Mortgage activity slows despite dropping interest rates

WASHINGTON, July 24 (UPI) -- Mortgage activity declined for the sixth consecutive week last week despite falling interest rates, a banking trade group said Wednesday.

The Mortgage Bankers Association said mortgage activity fell 1.2 percent in the week ending Friday.

In the same week, the MBA's index for refinancing activity dropped 1 percent.

The organization said average interest rates for standard 30-year, fixed-rate conforming loans fell from 4.68 percent to 4.58 percent with average points for 30-year, fixed rate loans dropping from 0.42 to 0.4.

For loans of more than $417,500, called jumbo loans, rates fell from 4.81 percent to 4.66 percent. Points for long-term jumbo loans rose from 0.4 to 0.41.

Average rates for 30-year, fixed rate contracts backed by the Federal Housing Administration fell from 4.38 percent to 4.28 percent with points rising from 0.22 to 0.33.

The average interest rate for 15-year, fixed-rate mortgages decreased from 3.7 percent to 3.63 percent. Points declined from 0.38 to 0.35 in the week.

For short-term, adjustable-rate contracts, interest rates fell from 3.39 percent to 3.3 percent with points dropping from 0.37 to 0.34.