San Diego Housing Market News and Analysis
WSJ - Mortgage Applications Tumble - (Again)
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Submitted by Arraya on July 14, 2010 - 6:15am
There have been fears for months that the incentive was stealing future sales and would result in a new leg down for the housing market once the support ended. New-home sales sunk to a record in May while pending total sales tumbled 30% from April.
Mortgage applications for new homes were down 43% from the Independence Day week last year, said the MBA. The woes comes even as mortgage rates sit near record lows.
Those rate declines have been giving some lift to applications for mortgage refinancing, which hit a 14-month high two weeks ago. But the MBA refinance reading fell 2.9% last week from a week earlier as its gauge for purchases dropped 3.1%. The share of applications for refinancing was flat at 78.7%.
Overall, the MBA's application index declined 2.9%, adjusted for seasonal factors and the July 4 holiday, and the four-week moving average increased 1.5%. The MBA's survey covers more than half of all U.S. retail residential mortgage applications.
Rates on 30-year fixed-rate mortgages averaged 4.69%, up from 4.68%, while the average for 15-year fixed-rate mortgages rose to 4.12% from 4.11%. The one-year ARM average was unchanged at 7.2%. Adjustable-rate mortgages made up 5.5% of activity last week, rising from 5.4% a week earlier.
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