Why Are Mortgage Applications Falling?
Mortgage applications once again fell last week, despite low interest rates and building confidence in the housing market. Total applications dropped 2.5 percent for last week, the Mortgage Bankers Association reports.
The refinance application bulk of application once again dropped this week, falling 3 percent from the prior week and reaching its lowest level since May. The purchasing index — which is a gauge of future home buying — had seen slight upticks in the last few weeks but also fell this week slightly by 0.8 percent compared to a week prior.
While interest rates continue to hover around record lows, housing analysts say that strict lending requirements continue to prevent many people from refinancing or securing a mortgage for home buying. Also, uncertainty over the general economic recovery has also made some buyers hesitant about taking on new debt, Dow Jones reports.