The applications for mortgage fell in United States last week. The Mortgage Bankers Association's index was reported down by 1.9% in the week ended March 12. The decline in the mortgage applications was mainly attributable to the decline in purchase in the period. The MBA's index of refinancing applications and purchase loan demand index were also reported down last week.

The Mortgage Bankers Association said on Wednesday that the borrowing cost in U. S. declined last week and the demand was also lacking in the period. The Association expects the housing recovery to be slow to develop this year. MBA told that the mortgage rates were reported lowest in past 3 months.

Also, the Mortgage Bankers Association's Index of refinancing applications declined by 1.7% and its purchase loan demand index declined by 2.3% last week.

Economists are seeing this situation very discouraging and expect the housing recovery when the economy would get more momentum.

In the last week ended March 12, the average rate on a 30 year fixed loan was reported of 4.91%, while it was reported of 5.01% in the prior week ended March 5. The rate reported last week was the lowest since December.