Mortgage applications for home purchase trended down over July, even as the 30-year mortgage rate fell to a record low 3.14%. The working through of pent-up demand from the spring, record low inventory and tighter credit conditions help explain that easing in demand. Looking ahead, elevated unemployment argues against a resurgence in purchase demand. But refinancing is set to pick-up as homeowners look to lock-in record-low financing costs.
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