Housing Market Resumes Losing Streak Amid Taper Talk
After posting the first gain in more than a month, applications for home loans resumed their downtrend. According to the Mortgage Bankers Association’s latest report, for the week ended December 6, loan applications dropped 5.5 percent on a seasonally adjusted basis from one week earlier. It was the 23rd decline in only 31 weeks.
The figure includes both refinancing and home purchase demand, and covers more than 75 percent of all domestic retail residential mortgage applications. The seasonally adjusted purchase index also fell 6 percent from the prior week to reach its worst level since December 2012.
“Mortgage applications fell further last week, with the market index falling to its lowest level in more than a dozen years,” said Mike Fratantoni, the Mortgage Bankers Association’s vice president of research and economics. “Both purchase and refinance applications fell as interest rates increased going into today’s Federal Open Market Committee meeting.”