Mortgage Application Index Slips 8.9%

U.S. mortgage applications fell 8.9% last week, the fifth straight decline, as higher mortgage rates and the Memorial Day holiday brought refinancing to the lowest level in more than two years.

The Mortgage Bankers Assn. said its gauge of loan demand dropped to 568.8 from 624.6 the week earlier. The group’s refinancing index fell 14% to 1,363.2, the lowest since the week ended April 19, 2002. Purchase applications also fell.