US Mortgage Applications Reach Two-Year Low
US Mortgage Applications Reach Two-Year Low
The Mortgage Bankers Association released its weekly report on US mortgage applications Wednesday, showing a drop in the measure to its lowest levels in two-plus years as increasing borrowing costs kept homeowners from seeking a refinance.
The index of loan applications for the week ending February 11th fell 9.5 percent from the week prior, reaching its lowest level since November 2008. The MBA's refinancing index decreased a staggering 11 percent for the week, while the purchase index fell 5.9 percent.
The average interest rate for 30 year fixed-rate mortgages was above 5 percent for the second week in a row. It's the first time that has happened since April. Mounting foreclosures and the nation's unemployment rate, which has been above 9 percent since May 2009, are believed to be slowing a recovery in the housing market, along with rising costs for financing.
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