New U.S. mortgage applications fell slightly last week for a second straight week, as mortgage rates inched up to their highest levels in a month, an industry trade group said on Wednesday.
The Mortgage Bankers Association's weekly mortgage gauge was still hovering near an eight-month high and loan demand to refinance and to buy homes has not dropped off sharply despite the backup in mortgage rates.
The Mortgage Bankers Association said its seasonally adjusted market index, a measure of weekly mortgage activity, fell for the week ending March 26 by 2.1 percent to 1,091.3 from the previous week's 1,114.9.
The Washington D.C. trade group's refinancing index declined 2.6 percent to 4,857.6 from previous week's 4,988.7, its highest level so far this year.
Strong home sales and a fresh wave of refinancing money for consumer spending should bolster the U.S. economy that has been struggling to create new jobs.
The group's purchase index, a gauge of new loan requests for home purchases, dipped by 1.1 percent to 443.8 from 448.9 in the prior week. The latest reading is only 2 percent below its recent high posted two weeks ago.
Average 30-year mortgage rates, excluding fees, increased 11 basis points to 5.49 percent, equaling the level for the week ending February 27. Last week's average 30-year rates were 14 basis points lower than the comparable week a year earlier.
Treasury yields, benchmarks for U.S. mortgage rates, have trended higher in recent days after a sharp decline in early March on disappointing jobs data for February. Data showing inflationary pressure and steady consumer confidence sent yields higher last week.