Mortgage Applications Near 2008 Lows

Is it time to call the spring season a bust? With each passing week it looks more and more like it is.

The Mortgage Bankers association said its seasonally adjusted index of mortgage application activity fell 7.8 percent to 621.6 in the week ended May 16.

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The MBA's seasonally adjusted index of refinancing applications declined 8.7 percent to 2,210.5 last week, the MBA said.

The gauge of loan requests for home purchases dropped 6.9 percent to 352.5 in the period.

Applications for refinancings fell 8.7 percent to 2210.5 from 2422.1 the previous week.

Fixed 30-year mortgage rates averaged 5.9 percent in the week, 8 basis points higher from the prior week.

Even with the mortgage rates low, people are not buying. Remeber the economy, job market, and inflation are worse than the official number. It's going to get worse before it gets better.