US mortgage applications fall 1.9%

US mortgage applications declined 1.9% in the week ending 2 December, according to the Mortgage Bankers Association of America.

Last week's fall, which follows a 0.8% drop in the previous week, comes as applications to purchase a home dropped 3% and refinance applications increased 4.7%.

Elsewhere, the 30-year mortgage rate slipped eight basis points to 6.41% - a fourth consecutive weekly decline and the lowest level seen since mid-September.

MBA economist Joel Kan said: "Purchase activity slowed last week, with a drop in conventional purchase applications partially offset by an increase in FHA and USDA loan applications. The average loan size for purchase applications decreased to $387,300 – its lowest level since January 2021. The decrease was consistent with slightly stronger government applications and a rapidly cooling home-price environment."

Reporting by Iain Gilbert at Sharecast.com