Mortgage applications in the U.S. fell 16 % last week to the lowest level since November as a jump in borrowing costs discouraged refinancing and threatened to deepen the housing slump.Rates began rising in May on concern increases in government borrowing to finance the record budget gap will prompt investors to seek higher yields, and Federal Reserve efforts to revive the economy will unleash inflation. Higher costs stunted a rush to lower mortgage payments as Americans tried to cope with the highest jobless rate in 25 years.Homeowners and prospective buyers are also being thwarted by signs that the housing market isn’t improving.
By Bob Willis, June 17, 2009, Bloomberg

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