Applications for U.S. home mortgages fell last week as refinancing activity slumped and mortgage rates were little changed, an industry group said on Wednesday.
But analysts said the U.S. housing market remains strong.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity declined 1.7 percent to 677.4 in the week ended Dec. 24, after remaining steady in the MBA's prior survey.
The MBA's seasonally adjusted index of refinancing applications fell 7.9 percent to 1,803.9 last week, more than offsetting a 5.7 percent gain the prior week.
It was the fifth decline in refinancing activity in the last six weeks, according to MBA data.
Fixed 30-year mortgage rates averaged 5.72 percent last week, excluding fees, up 3 basis points from 5.69 percent the prior week.
Fixed 30-year rates have not exceeded 5.80 percent since the two final weeks of July when they averaged 5.97 percent both weeks, according to MBA data.
The MBA's purchase index, a gauge of loan requests for home purchases, rose 2.7 percent to 483.8 last week, partly offsetting a 3.6 percent drop the prior week.
This report shows there is no moderation in continued strong demand for housing, said David Berson, chief economist at Fannie Mae in Washington, D.C.
The MBA's purchase index is on track to average at a record high level in December, following record performance in November, Berson said.
"There is no sign from these numbers of any material decline in home buying," he said.
Refi activity was bound to slow given the leveling off of mortgage rates, Berson added.
Refinancings made up 46.2 percent of all mortgage applications last week, down from 48.9 percent the prior week.
Applications for adjustable-rate mortgages were 33.8 percent of all applications, down from 34.4 percent.
One-year adjustable-rate mortgage rates averaged 4.05 percent, excluding fees, last week, down 10 basis points from the prior week.
