Mortgage applications in the U.S. fell for a third consecutive week as fewer Americans refinanced, while purchases stayed close to a 14-year low.
The Mortgage Bankers Association’s index decreased 4.9 percent in the period ended Sept. 2, the Washington-based group reported today. The refinancing gauge dropped 6.3 percent. A decrease in mortgage rates helped the group’s purchase index rise 0.2 percent, a second straight gain after reaching the lowest level since December 1996.
Plunging consumer confidence and a stagnant labor market may be keeping buyers on the sidelines, a reminder near-record low borrowing costs are doing little to spur housing. The prospect of more foreclosures working their way through the pipeline may keep prices at distressed levels, hampering the recovery.
