Mortgage applications down as housing market struggles

Lower home loan rates and prices haven’t been enough bolster the housing market, with lending standards remaining tight. 

Last week, the National Association of Realtors reported that sales of previously owned home unexpectedly climbed in January, while the Commerce Department showed sales of new homes dropping sharply. 

Foreclosures are expected to climb by 20 percent this year after 1 million homes were repossessed in 2010. RealtyTrac, a group that follows the market, has estimated prices could hit rock bottom this spring. 

The four-week moving average, which smoothes the volatility of the weekly numbers, was down 2.5 percent and dropped 2.2 percent for purchases and 2.7 percent for refinancing. 

The refinance share of mortgage activity decreased to 64.9 percent of total applications from 65.7 percent the previous week. 

The average interest rate for 30-year fixed-rate mortgages decreased to 4.84 percent from 5 percent, while the 15-year fixed-rate decreased to 4.17 percent from 4.28 percent.