According to the Mortgage Bankers Association’s (MBA) index, US mortgage applications fell in the week ending 26 th June by the most since February.

Applications to purchase a home or refinance a loan dropped -19% to 444.8 in that week and ended 548.2 in the prior week. The group’s refinancing gauge declined -30% to the lowest in seven months, while the index of purchases fell -4.5%.

Unemployment, which touched a 26-year high in May, and rising borrowing costs discouraged homeowners from refinancing, while a growing number of foreclosures sidelined potential buyers waiting for house prices to stop tumbling. Pending home sales showing contracts signed in May rose +0.1%, compared with a gain of +6.7% in April, according to the National Realtors Association.