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U.S. mortgage activity falls to 2-1/2 year low - MBA

U.S. mortgage activity falls to 2-1/2 year low - MBA

The Washington-based group's seasonally adjusted index on weekly home loan requests fell 3 percent to 342.5 in the week ended Aug. 3. This was the lowest reading since 328.6 in the week of Jan. 1, 2016.

The decline in home refinancing could be a future drag on domestic consumer spending. Homeowners refinance their homes either to reduce their monthly mortgage payments or to extract cash from the values of their homes.

So far, the drop in refinancing due primarily to higher mortgage rates has yet to hurt household expenditures.

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