NEW YORK — Mortgage application volume fell last week to its lowest level in nearly eight years, the Mortgage Bankers Assn. said Wednesday.
The drop is the latest sign of a struggling housing market. On Tuesday, a Commerce Department report showed construction of homes and apartments fell in July to the lowest level in more than 17 years.
And while fewer new homes are being built, fewer customers are refinancing mortgages. A sharp drop in refinance volume in recent weeks has been the leading driver of declining application volume.
The trade group's application index fell to 419.3 during the week ended Aug. 15, its lowest level since the index hit 298.3 in December 2000, and a 1.5% decline from the prior week. Application volume is down 61% from its 2008 peak in February.