US mortgage demand falls for second straight week

The U.S. home loan demand continued to fall in the week ended Dec.3, posting a decline for two straight weeks as the mortgage rates rise from their lowest levels, the Mortgage Bankers Association (MBA) said on Wednesday.

The total loan applications index, a measure of mortgage loan application volume, fell 0.9 percent on a seasonally adjusted basis from a week earlier. Mortgage loan application volume fell sharply by 16.5 percent in the previous week.

The refinancing loans index was down 1.4 percent last week, posting a decline for four straight weeks. The index touched its lowest level since June this year.

However, the purchase index went up by 1.8 percent, posting an increase for three consecutive weeks and reaching the highest level since the expiration of the homebuyer tax credit in April.

While the average contract interest rates for 30-year fixed rate mortgage increased to 4.66 percent from 4.56 percent in the previous week, 15-year fixed-rate mortgages increased to 3.98 percent from 3.91 percent.