U.S. [tag]mortgage applications[/tag] fell last week, retreating from a nine-month high as home loan interest rates crept up, an industry trade group’s data showed on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity , which includes both [tag]refinancing and purchasing loans[/tag], for the week ended Oct. 6 fell 5.5 percent to 599.1. This was a slide from the previous week’s 11.9 percent surge to 633.9, which was its highest level since January.

“Housing is something to pay close attention to, but I think you have to be careful you’re not losing sight of the entire economy,” he said. “The biggest effects from housing are secondary effects and not the primary effects of actual construction of homes and to date, we have yet to see the secondary effects play out in any incredibly negative way.” Matus expects U.S. economic growth to slow due to the direct effects of softer housing investment. Borrowing costs on [tag]30-year fixed-rate mortgages[/tag], excluding fees, averaged 6.27 percent. This was up 0.03 percent from the previous week but below a four-year high of 6.86 percent touched in June.

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