Mortgage Applications Decrease, Sign of Unstable Housing Market

By Kyle Chezum Updated on 12/30/2010

12/30/10

According to the Mortgage Bankers Association, mortgage applications decreased by 2.3% during the first few weeks of December.  This is likely due to interest rates increasing during the same time period.  Experts are taking this as a sign that the housing market is still unstable.

Unemployment, at a nearly 30-year high, has put additional strain on the housing market as more and more potential buyers are unprepared to purchase.  Higher interest rates will likely shut out still more borrowers.

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