U.S. home loan demand fell in the week ended Feb. 25 despite a drop in mortgage interest rates, the Mortgage Bankers Association (MBA) said on Wednesday.
The total loan applications index, a measure of mortgage loan application volume, decreased 6.5 percent on a seasonally-adjusted basis from a week earlier. The refinancing loans index fell 6.5 percent from the previous week, while the purchasing index declined by 6.1 percent.
The refinance share of mortgage activity decreased to 64.9 percent of total applications from 65.7 percent in the previous week.
While the average contract interest rates for 30-year fixed rate mortgage decreased to 4.84 percent from 5.00 percent in the previous week, 15-year fixed-rate mortgages fell to 4.17 percent from 4.28 percent.