U.S. 30-Year Mortgage applications fall in latest week

NEW YORK,- U.S. mortgage applications fell last week, as interest rates on 30-year home loans climbed to their highest levels since early April, according to data by an industry group released on Wednesday show.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Sept. 30 slipped 1.1 percent to 713.5, its lowest level since late May, from prior week's 721.2.

Borrowing costs on on 30-year fixed-rate mortgages, excluding fees, averaged 5.94 percent last week, up 0.09 percentage point from 5.85 percent the prior week. The average 30-year rate reached its highest level since the week ended April 8 when it was 5.95 percent.

The MBA's seasonally adjusted purchase mortgage index fell 1.9 percent to 473.8 from prior week's 483.1. The index, considered a timely gauge on U.S. home sales, declined for a third consecutive week to its lowest level since the last week of August when the purchase index was 470.6.

The group's seasonally adjusted index of refinancing applications was marginally higher at 2,107.4 versus 2,106.6 for the previous week.

Last week, refinancings accounted for 44.5 percent of all mortgage applications filed last week, up from 43.9 percent the prior week.

Applications for adjustable-rate home loans represented 29.8 percent last week, up from 28.8 percent the previous week, MBA said.

One-year adjustable-rate mortgage rates, excluding fees, averaged 5.13 percent, up 0.11 percentage point from the prior week.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.