The housing recovery is often considered one of the strongest areas of the economy, but rising interest rates continue to weigh on consumers.
According to the Mortgage Bankers Association’s latest report, for the week ended July 5, loan application volume dropped 4 percent on a seasonally adjusted basis from one week earlier. That’s the eighth weekly decline in nine weeks and comes after an 11.7 percent plunge in the previous week. The figures include both refinancing and home purchase demand, and cover more than 75 percent of all domestic retail residential mortgage applications.
The industry group’s refinance index also dropped 4 percent, while the unadjusted purchase index crashed 23 percent. However, the purchase index is still 5 percent higher than the same time last year.
Overall, the refinance share of mortgage activity accounted for 64 percent of total applications, unchanged from the previous week and at its worst level since May 2011.