Mortgage applications continued their decline after last week’s 9.2% free fall, dropping another 1% for the week ending June 20, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
This comes despite mortgage rates continuing their decline, and a serious slowdown in home price appreciation.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1% on a seasonally adjusted basis from one week earlier to the lowest level since April 2014. On an unadjusted basis, the Index decreased 2% compared with the previous week.
The Refinance Index decreased 1% from the previous week to the lowest level since May 2014.
“Another dip in mortgage applications is particularly disappointing after the welcome news of increased home sales earlier this week,” said Quicken Loans vice president Bill Banfield. “While we have seen many of the indicators regain the footing they lost in the recession, housing cannot reach its stride until the employment picture attains stability.”