Mortgage applications fall after 33-week steadiness in the US

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Mortgage applications fall after 33-week steadiness in the US

On Wednesday, 19th June, Reuters reported that there was a significant downfall in the applications received for housing mortgage in the United States. The drop in the number of applications ended the 33-month high that had been seen on mortgage applications in the country.

According to the Mortgage Bankers Association, the costs of borrowing in the US have increased after having stayed low for nearly two years, going back to September 2017. The Association's statistical index for requests made for loans – both to buy a house and to refinance an existing one – showed that there was a fall of about 3.4 per cent for the week ended, 14th June from the preceding week.

For the week ended 7th June, the index was placed at around 530 which reportedly was the highest since 2016 September. For the week ended 14th June, the index showed the request had dropped to around 512. In another report published on Monday, 17th June, Reuters had mentioned that despite the (then) low mortgage rates in the US, home builders were wary about the housing market.

Greg Ugalde, National Association of Home Builders (NAHB) chairman had issued a statement on the matter. The statement read, as quoted by Reuters, "While demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues." In two days' time, this has been quite a turnaround.