Interest rates have moved in the mortgage industry's favor, but a plunging stock market is hardly good news for home lenders.

The market "could dampen the appetite for homebuying, because the wealth buildup in the stock market has been a contributor to homebuying," said David Lereah, chief economist for the Mortgage Bankers Association of America.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.