Mortgage applications fell for the first time in four weeks just around the time the demand hit its lowest point in three years.

According to the Mortgage Bankers Association weekly report, the adjusted index has decreased for mortgage application activity in the week of August 25 0.9%, stopping at almost 23% under last year’s level for the identical week.

The decline prolonged consistent with the slowdown being noticed in the housing market.

"There is still a soft landing camp for the refinancing market," clarified John Shin, a Lehman Brothers senior economist. "We do figure a enormous impact on the economy and might expect that the declining housing market is going to reduce to about one percentage point off of growth over the remainder of the year and the next year as well."

For six weeks straight, home refinancing demand increased as a result of decreasing mortgage rates.
Last week, the 30-year fixed-rate mortgage rate came to 6.39%, way below June’s four-year high of 6.86%. Hence, that are higher last year’s level of 5.73%.

The adjusted index for refinancing applications has increased some, up to 1,609.2 from 1,608.5.

For the total applications on refinancing share has increased 41.5%, up from 40.6% the week before. This is the highest level since since February.

Fifteen-year fixed-rate mortgages worked out to a rate of 6.06%, up from 6.04% the week prior. Also the one-year adjustable mortgage saw an enhancement, up to 5.97% from 5.91%.

ARMs made up 26.8% of all applications for loans, an rise from 26.4% the week before.

The MBA’s survey covers 50% of all the retail residential mortgage loans in the US. The people who responded consists of bankers that specialize in mortgages, banks and thrifts.