(Bloomberg) -- Mortgage applications for home purchases in the US fell last week by the most in a month, indicating the housing market is struggling to gain traction despite a recent easing in borrowing costs.
The Mortgage Bankers Association’s index slumped more than 10% to 184.3, data out Wednesday showed. The decline was the first in three weeks. Applications for mortgage refinancing also declined.
The contract rate on a 30-year fixed mortgage was little changed at 6.19% in the week ended Jan. 27.
The housing market has been showing signs of stabilizing as mortgage rates have fallen from their recent highs. That’s giving builders some optimism going into the spring, traditionally the peak time for homebuying in the US. A measure of homebuilder sentiment rose in January, following declines in every month last year.
The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.
©2023 Bloomberg L.P.
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