Mortgage applications nationwide decline….again.

It continues….mortgage applications continue to drop as rates remain elevated and the affordability index drops.  The refinance application index is now down 70% from the spring (most likely higher in high cost states like CA and FL where refinance activity was heavy).   Purchase applications continue to drop and that trend most likely will continue as the summer buying season comes to an end.  Mortgage rates have remained somewhat stable the last few weeks (compared to June/July).   Next week the Fed meets and many are expecting the Fed to taper.  In June and July some were expecting a 10-20 billion dollar reduction however that has come down to 5-10 due to the softening of data.