(Nov 19): US mortgage activity declined last week as home-financing costs continued to tick higher, adding to evidence of a struggling housing market.

A Mortgage Bankers Association composite measure of applications to purchase or refinance a home dropped 5.2% to a four-week low in the period ended Nov 14. The contract rate on a 30-year mortgage edged up 3 basis points to 6.37%, according to the data released Wednesday.

The group’s measure of refinancing slid 7.3% to a two-month low, while an index of home-purchase applications declined 2.3%.

The slowdown in mortgage activity adds to evidence of the persistent headwinds buffeting the housing market, including poor affordability. In an effort to stir buyer interest, builders are reducing prices and using incentives.

However, figures out Tuesday from the National Association of Home Builders and Wells Fargo showed sales expectations dipped this month, and more homebuilders saw conditions as poor than good.

The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.

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