Mortgage applications continue skid

NEW YORK (CNNMoney.com) -- Mortgage applications in the U.S. declined for the fourth straight week as a decline in refinancing activity offset an increase in new home applications, according to the latest report by the Mortgage Bankers Association.

The industry group's seasonally adjusted index of mortgage applications dropped 0.4 percent to 646.6 in the week ended April 6, from 649.5 one week earlier.

The MBA's seasonally adjusted purchase index rose 2.7 percent to 413.8, while refinancing applications index fell 4 percent to 2,015.

The recent crisis in subprime mortgages has rattled the mortgage industry lately, with lenders clamping down on loans to borrowers with weak credit.

Concerns have emerged that tighter lending practices could ultimately hurt consumers, homebuilders, lenders and the broader economy.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.16 percent, up from 6.13 the previous week.

Fixed 15-year mortgage rates averaged 5.91 percent, up from 5.85 the previous week. Rates on one-year adjustable-rate mortgages (ARMs) rose to 5.88 percent from 5.87.

The ARM share of activity decreased to 18.7 percent of total applications from 19.2 the week before.

The MBA's survey covers about 50 percent of all U.S. retail residential mortgage loans. Respondents include mortgage bankers, commercial banks and thrifts.

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