Mortgage applications fell for the fifth time in the past six weeks, led by a drop in purchases even as borrowing costs retreated.

The Mortgage Bankers Association's index declined 0.2% in the period ended June 27 after falling 1% in the prior week, the Washington-based trade group reported today.

The measure for purchase applications decreased 0.7% last week, while the refinancing index advanced 0.1%. The share of applicants seeking to refinance expanded to 52.5% from 52.1% the prior week, today's report showed.

The average rate on a 30-year fixed loan eased to 4.28% from 4.33%. The average rate on a 15-year mortgage also dropped, to 3.42% from 3.47%.

Bloomberg News