Mortgage Applications Drop to New Low
According to the Mortgage Bankers Association, applications for U.S. home mortgages last week dropped to their lowest since December, further indication that the housing market is far from recovery.
The MBA said its seasonally adjusted index of mortgage application activity dropped 11.1 percent to 567.0 in the week ended April 25, its lowest since the week ending Dec. 28. Its index of applications for loan refinancings fell 16.7 percent last week to 1,905.2.
The gauge of loan requests for home purchases decreased 4.8 percent to 340.1.
The drop in applications follows data Tuesday that showed foreclosure filings more than doubled last quarter from a year earlier, adding to inventories and exacerbating price declines.
Falling home values have deterred would-be buyers, who fear taking a loss shortly after a potential purchase, economists say.
Published on April 30, 2008
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