Mortgage applications tick higher

NEW YORK (CNNMoney.com) -- Mortgage applications inched higher last week despite a dip in refinancing activity, according to the latest report by the Mortgage Bankers Association.

The industry group's seasonally adjusted index of mortgage applications rose for the second straight week, climbing 0.6 percent to 657.2 in the week ended April 27, from 653.3 one week earlier.

The four-week moving average, which smoothes out volatility in the weekly figures, rose 0.3 percent.

The MBA's refinancing applications index slipped 3.2 percent to 2015.8 from 2081.6 the previous week. The seasonally adjusted purchase index, viewed as a key measurement of U.S. home sales, rose 4 percent to 427.3.

Mortgage applications have slipped in recent weeks, hurt by the recent crisis in the subprime mortgage sector, which has fueled concerns that lenders may clamp down on loans to borrowers with weak credit.

The subprime fallout weighed on the housing sector in March, as existing home sales tumbled nearly 5 percent, the National Association of Realtors reported Tuesday.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.14 percent, up from 6.13 the previous week.

Fixed 15-year mortgage rates rose to 5.83 percent from 5.82 the previous week. Rates on one-year adjustable-rate mortgages (ARMs) remained unchanged at 5.79 percent.

The ARM share of activity fell to 17.9 percent of total applications from 18.3 percent 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.