WASHINGTON -- The number of mortgage applications fell to the lowest level in nearly a year, according to an index by the Mortgage Bankers Association.
The association's index of applications fell 4 percent in the week that ended Dec. 16 to 594.6, from 619.3 the previous week. It was the lowest level since the first week in January. The group's purchase index fell 5.2 percent to 453.1 from 477.9 the week before.
Higher home prices and mortgage rates have made homes less affordable, while less refinancing removes a source of cash for consumers. An improving labor market may help cushion the effect of higher costs, allowing sales to slow gradually in 2006 from a record this year, economists said.