Mortgage activity down, despite low rates

U.S. mortgage applications fell 2.1 percent in the week ending Friday with interest rates hitting new lows, the Mortgage Bankers Association said. The trade group's Refinancing Index also fell, dropping 3 percent from the previous week. In the week, interest rates for 30-year, fixed-rate conforming mortgages fell from 3.86 percent to 3.79 percent, the lowest rate in the history of the survey. Average points for 30-year-fixed-rate loans fell from 0.41 to 0.36. The average contract interest rate for 15-year fixed-rate mortgages also hit a new low, falling from 3.2 percent to 3.15 percent, with points decreasing to 0.43 from 0.47 in the week.