Rising home prices hit the mortgage industry hard last week. Total mortgage application volume fell 3 percent from the previous week, and 17 percent from a year ago, according to the Mortgage Bankers Association’s seasonally adjusted report.
The market has been especially tough on new homebuyers, with data showing a downward trend in purchase volume. Applications to purchase a home fell 2 percent for the week, and were also down 2 percent from a year ago.
Soaring prices are sapping mortgage demand. In June, home prices rose 6.8 percent from a year ago, according to a report from CoreLogic.
“Despite recent data indicating a strong U.S. economy and job market, including signs of wage growth, overall mortgage applications fell for the third straight week as housing continues to be hampered by the lack of homes for sale and crimped affordability,” said Joel Kan, MBA vice president of economic and industry forecasting.
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