Home-loan demand falls even as interest rates slip

U.S. mortgage applications fell for the first time in three weeks despite a drop in mortgage rates to their lowest level since January.

The Mortgage Bankers Assn. said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, for the week ended Nov. 17 dropped 3.7% to 623.6 from the previous week’s 647.5.

Applications were 1.9% below their year-ago level.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.13%, down 0.02 of a percentage point from the previous week, and well below a four-year high of 6.86% touched in June.