Demand for purchase mortgages weakest since 2003

USATODAY.com

"NEW YORK (Reuters) — Mortgage applications fell for the first time in four weeks as demand for home purchase loans dropped to the lowest level in nearly three years, an industry trade group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, for the week ended Aug. 25 decreased 0.9% to 556.5 from the previous week's 561.5.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.39%, up 0.01 percentage point from the previous week when they sank to their lowest since March. Interest rates were above year-ago levels of 5.73% but below a four-year high of 6.86% touched in June."