Mortgage activity drops with rates falling

U.S. mortgage applications fell in the week despite declines in interest rates for long-term contracts, the Mortgage Bankers Association said Wednesday. The trade group said mortgage applications fell 2.5 percent week to week. The trade group's Refinancing Index fell 3 percent from the previous week to the lowest level since May, the association said. In the week, interest rates for 30-year, fixed-rate conforming mortgages fell from 3.8 percent to 3.78 percent with points falling from 0.42 to 0.37. The average interest rate for 15-year fixed-rate mortgages also fell, dropping from 3.12 percent to 3.1 percent, with points falling from 0.44 to 0.37 in the week.