http://online.wsj.com/article/SB10001424052748703792704575366633415279268.html
The number of mortgage applications in the U.S. for home purchases fell to a 13 1/2-year low last week, the Mortgage Bankers Association reported Wednesday, in a further sign of the slump in homebuying since a federal tax credit concluded at the end of April.
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.
For many of us bears and fence sitters, this is all good news if it translates into further home price declines. The problem is the majority of potential home buyers don’t look much further than monthly mortgage outgoings. I think what may be keeping some buyers away is the generally poor economic outlook. More troubling is even if that were not so bad, the mood might be the same.
For many of us bears and fence sitters, this is all good news if it translates into further home price declines. The problem is the majority of potential home buyers don’t look much further than monthly mortgage outgoings. I think what may be keeping some buyers away is the generally poor economic outlook. More troubling is even if that were not so bad, the mood might be the same.
For many of us bears and fence sitters, this is all good news if it translates into further home price declines. The problem is the majority of potential home buyers don’t look much further than monthly mortgage outgoings. I think what may be keeping some buyers away is the generally poor economic outlook. More troubling is even if that were not so bad, the mood might be the same.
For many of us bears and fence sitters, this is all good news if it translates into further home price declines. The problem is the majority of potential home buyers don’t look much further than monthly mortgage outgoings. I think what may be keeping some buyers away is the generally poor economic outlook. More troubling is even if that were not so bad, the mood might be the same.
For many of us bears and fence sitters, this is all good news if it translates into further home price declines. The problem is the majority of potential home buyers don’t look much further than monthly mortgage outgoings. I think what may be keeping some buyers away is the generally poor economic outlook. More troubling is even if that were not so bad, the mood might be the same.
This was expected, I think. Many were making a big hoopla over sales. Conveniently overlooking the 6k credit, then 8k credit, then 8k + 10k. All the gains will be lost once all the credits expire. We will be back where we started, only less qualified buyers b/c we borrowed from the future. Now the wild card. What plan/scheme does the government have next up its sleeve?
This was expected, I think. Many were making a big hoopla over sales. Conveniently overlooking the 6k credit, then 8k credit, then 8k + 10k. All the gains will be lost once all the credits expire. We will be back where we started, only less qualified buyers b/c we borrowed from the future. Now the wild card. What plan/scheme does the government have next up its sleeve?
This was expected, I think. Many were making a big hoopla over sales. Conveniently overlooking the 6k credit, then 8k credit, then 8k + 10k. All the gains will be lost once all the credits expire. We will be back where we started, only less qualified buyers b/c we borrowed from the future. Now the wild card. What plan/scheme does the government have next up its sleeve?
This was expected, I think. Many were making a big hoopla over sales. Conveniently overlooking the 6k credit, then 8k credit, then 8k + 10k. All the gains will be lost once all the credits expire. We will be back where we started, only less qualified buyers b/c we borrowed from the future. Now the wild card. What plan/scheme does the government have next up its sleeve?
