Mortgage applications fall to 18-year low amid sluggish market

Nov. 21 (UPI) -- Mortgage applications in the United States fell last week to its lowest point in nearly 20 years, data showed Wednesday.

Applications fell by 0.1 percent from a week earlier as the national housing market continued a sluggish year, the Mortgage Bankers Association said in a report.

The association's Weekly Mortgage Applications Survey, ending Nov. 16, showed the decrease on a seasonally adjusted basis. The unadjusted basis showed a 3 percent decrease.

The refinancing index fell 5 percent to its lowest mark since December 2000 -- 18 years ago. The survey showed the seasonally adjusted purchase index raised 3 percent and the unadjusted purchase index fell 1 percent.

The association said the purchase index is 5 percent lower than this same period last year.

"Treasury rates declined last week, as equity markets continued to see large swings amidst investor concerns over global economic growth," said Joel Kan, the association's associate vice president of economic and industry forecasting.

Mortgage rates receded among most loan types -- including the 30-year fixed-rate mortgage, which saw an end to its run of six straight weekly increases.

President Donald Trump has tried to push the Federal Reserve to lower interest rates.

"Every single data point is now extending to 'what does this mean for the Fed,' and rate-hike odds past one more in December continue to shrink," Peter Boockvar, chief investment officer with Bleakley Advisory Group, told CNBC. "Calibrating monetary policy from here in order to achieve a rare soft landing will not be easy, as it never is."

The Federal Reserve has so far increased benchmark rates three times this year. Some analysts believe it will raise them again at its final policy meeting of the year on Dec. 18 and 19.