U.S. mortgage applications gauge slumps to lowest since January

WASHINGTON – Mortgage applications in the U.S. slumped last week after the sharpest increase in borrowing costs since mid-2013, signaling tougher sledding for the housing market.

The Mortgage Bankers Association’s index of purchase and refinancing applications dropped 9.2 percent in the period ended Nov. 11 to 436.3, the lowest level since January. The average rate on a 30-year fixed loan soared 18 basis points, the most since June 2013, to 3.95 percent.

The Washington-based group’s measure of purchase applications sank 6.2 percent to 197, while an index of refinancing slumped 10.9 percent to an almost eight-month low.

Financing costs have surged since the Nov. 8 election on speculation President-elect Donald Trump’s pro-growth agenda will spark faster inflation.

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