US mortgage applications down despite record low rates

Washington, April 26 (IANS) US mortgage applications decreased last week despite an all-time low in mortgage rates, according to the latest Weekly Mortgage Applications Survey released Wednesday by the US Mortgage Bankers Association (MBA).

The association said that the Market Composite Index of US mortgage applications, a measure of mortgage loan application volume, edged down 3.8 percent in the week ending April 20, 2012, on a seasonally adjusted basis from the previous week, reported Xinhua.

The Refinance Index decreased 5.6 percent from the previous week, while the seasonally adjusted Purchase Index increased 2.7 percent.

The US housing market has been struggling for recovery. Many economists hold that the market still needs years to recover entirely, saying that the serious imbalance between supply and demand, tight mortgage credit, and overhang of empty and foreclosed homes would hinder a rebound.