US mortgage applications lowest in eight years

20 August 2008 17:23  [Source: ICIS news]

HOUSTON (ICIS news)--US mortgage application volume last week fell to its lowest level since December 2000, the Mortgage Bankers Association said on Wednesday.

The association's Market Composite Index, a measure of mortgage loan application volume, was 419.3 for the week ended 15 August, the lowest since the week ended 29 December 2000, when it was 298.3.

The index dropped 34.2% compared with the same week last year on an unadjusted basis, the association said.

The housing sector is a crucial downstream consuming sector for the chemicals industry. The American Chemistry Council (ACC) estimates that every new home consumes about $16,000 (€10,800) worth of chemicals or chemicals-derived products.

 The application volume was down 61% from its 2008 peak in February, the association said.

The survey covers about 50% of all residential retail mortgage originations each week.

($1 = €0.68)

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By: Brian Ford
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