Mortgage applications are down, an indicator that the low home sales volume we saw nationally in June will continue in the near term, at least. Mortgage applications for home purchases as of June were down 15 percent from the same period last year, according to the Mortgage Bankers Association.
The mortgage bankers attribute the slow growth to three factors: low housing inventory, young adults without jobs, and investors, having pushed up prices, are withdrawing from some markets.
Moody’s Analytics takes a more positive view, expecting stronger growth in the second half of the year and into 2015. Moody’s Analytics, attributes the more positive outlook to job growth. Access to mortgage financing could also improve as lenders compete more aggressively for purchase business.