Mortgage Purchase Applications Continue to Trend Lower

| July 7, 2010

The Mortgage Bankers Association reported that their Purchase Index decreased 2.0% last week and has now declined eight of the last nine weeks to the lowest level since 1996, as shown on the following graph from Calculated Risk.

The drop in purchase applications following the expiration of the home buyer tax credit in April has been as precipitous as anticipated with June down 15% from May and 30% from April. We expect this secular downtrend to continue well into next year as the residential housing market remains under pressure.

Category: Commentary, Market Update

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