Mortgage applications in the U.S. fell last week as requests for purchase financing dropped to the lowest level in more than 13 years.
The Mortgage Bankers Association’s index decreased 2.9 percent in the week ended July 9, the Washington-based Mortgage Bankers Association reported today. The group’s purchase index declined 3.1 percent to the lowest level since December 1996 and the refinancing gauge fell 2.9 percent after reaching its highest level since May 2009.
Home purchases have weakened since the April 30 contract signing deadline for buyers to take advantage of a government tax credit. Low borrowing costs, while spurring refinancing in recent weeks, haven’t boosted home sales in the face of mounting foreclosures and an unemployment rate that is forecast to end the year at 9.5 percent.
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