Mortgage Applications Plunge to 15-Year Low

August 25, 2011

Despite record low interest rates, mortgage applications for purchasing a home fell again last week, reaching its lowest level since December 1996, the Mortgage Bankers Association reports. 

Buyers continue to be reluctant out of fears the U.S. economy could fall into another recession or due to job insecurity, experts say. 

Overall, mortgage applications fell to a seasonally adjusted rate of 2.4 percent last week compared to the week prior. Mortgage applications for home purchases dropped 5.7 percent.

"Another week of volatile markets and rampant uncertainty regarding the economy kept prospective home buyers on the sidelines," says Mike Fratantoni, MBA’s vice president of research and economics.

Source: “Home Loan Applications Fall to 15-Year Low,” The Associated Press (Aug. 24, 2011)

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