Mortgage applications drop 18.9% in one week

Mortgage applications, a true leading indicator of real estate activity (as opposed to sales, which lags behind by 30-60 days) dropped 18.9% from week to week:

The volume of mortgage applications filed last week dropped a seasonally adjusted 18.9% from the week before, as refinancing activity plunged, the Mortgage Bankers Association reported Wednesday.

Applications for mortgages to refinance existing home loans fell 30% for the week ended June 26 -- putting the MBA survey's refinance index at its lowest level since November.

Meanwhile, the week-to-week pace of applications filed for mortgages to purchase homes was down a seasonally adjusted 4.5%.

In the week ended June 19, overall applications activity rose a seasonally adjusted 6.6% from the prior week, the MBA's data showed. The survey done by the Washington-based MBA covers about half of all U.S. retail residential mortgage applications.

Again, not news for loyal followers of HighRiseSF - this is a conversation we've been having for the past month.

Keep following for the latest in up-to-date information and its impact on real estate prices and mortgage rates.

SOURCE: MARKETWATCH