Prospects for recovery in the US housing market continue to look bleak as the number of Americans applying for a new mortgage fell to an eight-year low.

The number of new applications dropped by 1.5% last week from the previous week, signifying the market has yet to hit bottom.

As a result, the US Mortgage Bankers Association index of applications now stands at a measure of 419.3, its lowest level since December 2000.

Daily Telegraph