Casualties continue to mount as the subprime crisis rakes the housing market.
Mortgage applications plummeted last week, according to the Mortgage Bankers Association. The drop is indicative of growing unrest in the housing market, as rising interest rates, stricter lending guidelines and the subprime bubble continue to affect prospective homeowners.
Applications to buy homes dropped 3 percent and mortgage application volume fell 3.4 percent the week ending June 15, according to the MBA Market Composite Index.
With subprime borrowers defaulting every day, lenders are tightening their belts and instituting stricter rules and regulations for borrowers. In turn, more applications are being denied.
Foreclosure starts also reached another record high last quarter, the MBA recently reported, another sign of the long reach of the subprime crisis. The organization sited particular problems in California, Florida and a couple other states.