New applications for U.S. home loans fell last week as 30-year mortgage rates reached their highest levels in a month, an industry group said on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted market index, a measure of mortgage activity, fell by 4.5 percent to 727.3 for the week ended on Nov. 5 from the previous week's 761.7.
Thirty-year mortgage rates, excluding fees, averaged 5.69 percent, up 0.04 percentage point from the previous week, but 0.25 percentage point lower than a year ago, the Washington trade group said.
That is the highest level 30-year mortgage rates in a month when the rate hit that same level on Oct. 8.
Mortgage rates are dictated by Treasury yields, which rose last week on the back of a stronger-than-expected jobs report for October. The 10-year Treasury yield is currently at 4.23 percent, up from 4.074 percent a week ago.
The uptick in 30-year mortgage rates, while still at a level lower than a year ago, may have enticed consumers to move into adjustable-rate mortgages instead of fixed mortgage rates. ARMS comprised 35.3 percent of total mortgage applications last week, up from 34.4 percent the previous week.
The MBA's seasonally adjusted index on new refinancing applications decreased by 6.7 percent to 2,148.7 for last week from the previous week's 2,303.9.
The association's purchase index, a gauge of new loan requests for home purchases, dropped by 2.7 percent last week to 483.0 from 496.5 in the prior week.
