Mortgage applications fell 4.1% during the week ending Feb. 14. This is according to data from the Mortgage Bankers Association.
This is an acceleration from the 2.0% decline from a week ago.
Bloomberg LP Chief Economist Michael McDonough tweeted the chart below overlaying mortgage applications with new home sales.
“Plunging mortgage purchase applications highlight concerns over continued home sales strength,” said McDonough.
The U.S. housing market recovery has been one of the most encouraging stories in the global economy. But with prices well off of their lows and mortgage rates becoming increasingly volatile, the clock may be ticking for the recovery.