The Mortgage Bankers Association said its
seasonally adjusted index of mortgage application activity,
which includes both refinancing and home purchase demand, sank
12.8 percent in the week ended November 29.
The week's results included an adjustment for the Thanksgiving
holiday on Thursday, the group said.
The data marked the fifth straight weekly drop for the index,
taking it to its lowest level since early September.
The fall in mortgage applications comes as investors try to
gauge when the U.S. Federal Reserve might exit its bond-buying
The Fed has said it would begin to scale back its $85 billion
per month in purchases of Treasuries and mortgage-backed
securities when policy makers are convinced of a steady,
But data on the world's biggest economy have been mixed, leaving
investors uncertain about the future path of U.S. monetary
MBA data showed 30-year mortgage rates rose 3 basis points in
the latest week to 4.51 percent.
The refinancing index sank 17.5 percent while the purchase
index, a leading indicator of home sales, fell 4.1 percent.
The mortgage survey covers over 75 percent of U.S. retail
residential mortgage applications, according to MBA.
MEDIA; By Luciana Lopez]
(Reporting by Luciana Lopez; editing by Leslie Adler)
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