Mortgage Activity Slows Again

Updated from 9:25 a.m.

Mortgage-loan applications dropped sharply and interest rates crept up during the holiday-shortened week ended June 4.

The total number of mortgage applications decreased by 8.9% from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association, a trade group. Applications were down 68% from the same period a year ago.

The number of homeowners refinancing dropped to the lowest level in more than two years and was just 32.6% of all applications, down from 34.3% the week before. In addition, the index used to measure refinancing hit a low not seen since April 19, 2002, and refinancing deals were down 86% from their record high, set exactly one year ago, the group reported. ...