The Mortgage Bankers Association reported another decline in mortgage applications through the first week of August, continuing a back and forth trend that has played out throughout the summer. According to the group, application volumes slipped a seasonally adjusted 2.7 percent for the week ending August 8th, coming down after a small increase the week prior. Unadjusted, the decrease was bit bigger at 3 percent. Application numbers were down in both sections of the market. According to the MBA, the association’s Refinance Index dropped 4 percent over the week, descending to its lowest level since May, while the adjusted Purchase Index fell 1 percent to its lowest level since February. The MBA’s measure of government-based purchase applications, also seasonally adjusted, slipped 1 percent, hitting its lowest point in seven years. After half a year of failed predictions and slow starts, the U.S. economy actually appears to be closing in on normal, at least according to Freddie Mac. The company’s latest Economic and Housing Market Outlook shows that the agency expects to see the U.S. housing market driven once again by fundamentals—jobs, household formations, and affordability—rather than economic upheaval. With labor and GDP growth on the upswing, Freddie forecasts a recovery in household formations and new homebuilding for this year and next, even as home sales and mortgage originations weaken.

• published: 14 Aug 2014
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