Mortgage Applications Fall Despite 5.15% Average Rate

A slight hurdle was hit after several weeks of increasing demand for mortgage loans and new purchases, a housing industry survey said. Even with average interest rates for a 30-year mortgage moving downwards in the week, demand for refinance loans, new loans, and purchases each declined.

The Mortgage Bankers Association (MBA) said interest rates for a 30-year loan moved down 9 basis points to 5.15% in the week ending August 28.

That rate matches a six-week low seen two weeks ago, yet refinances decreased 3.1% in the week, after hitting their highest level since early June in the week before. That helped caused the Market Composite Index â€