Mortgage Refinancings Drop Despite Rates

The number of U.S. mortgage refinancings fell sharply last week, suggesting that the refinancing boom might have run its course even as rates eased, economists said.

The Mortgage Bankers Assn. said its seasonally adjusted index on new refinancing applications fell by 14.2% to 1,949.2 for the week ended Friday, breaking a string of five consecutive weeks of increases in the refinancing index.

The MBA’s gauge of new loan requests for home purchases fell 4.9% to 436.3, while the index of all kinds of mortgage activity dropped 9.2% to 658.2.