Private employers nationwide cut almost half a million jobs in June and mortgage applications fell to a seven-month low last week, dampening hopes the economy was emerging from its worst slump since the Great Depression.

The 473,000 private-sector job losses were more than expected, but less than the 485,000 jobs lost in May and the smallest number cut in a month since last October.

The Mortgage Bankers Association said its nationwide mortgage applications index fell 18.9 percent in the week ended June 26 to its lowest level since November, despite slightly lower borrowing costs.

"Rising unemployment, concerns about job security, potential buyers’ inability to sell their existing homes and problems with appraisals coming in too low are all weighing on demand," said Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley.