US mortgage activity drops with rates rising

U.S. mortgage applications fell in the week while interest rates for long-term contracts rose, the Mortgage Bankers Association said Wednesday. The trade group said mortgage applications rose 7.4 percent week to week. The trade group's Refinancing Index fell 9 percent from the previous week to the lowest level since early July, the association said. In the week, interest rates for 30-year, fixed-rate conforming mortgages rose from 3.76 percent to 3.865 percent with points falling from 0.47 to 0.42. The average interest rate for 15-year fixed-rate mortgages also rose, climbing from 3.12 percent to 3.15 percent, with points rising from 0.4 to 0.44 in the week.