Applications index rises on refinancing

Mortgage applications in the U.S. rose from a one-month low last week, led by a gain in refinancing.

The Mortgage Bankers Assn.’s index of applications to buy a home or refinance a loan rose 1.3% last week to 622.9 from 615.2. The group’s purchase index also rose.

Economists see little prospect for sustained improvement this year as falling home prices and less access to credit will cause Americans to shy away from buying or refinancing.

A separate survey showed that a third of home loans originated by mortgage brokers failed to close in August because of tighter lending standards, according to Inside Mortgage Finance.