Nov
24

Mortgage Applications Get a Boost

November 24, 2010

The amount of home buyers applying for mortgages jumped to its highest level since the beginning of May.

The Mortgage Bankers Association (MBA) today released its Weekly Applications Survey for the week ending November 19.

The Purchase Index increased 14.4 percent from the previous week, which included Veterans Day. No adjustment was made for the holiday, so maybe the numbers are a little skewed, but let’s enjoy it anyway.

This is the highest the Purchase Index recorded since the week ending May 7.

“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said MBA’s Michael Fratantoni. “While the increase was magnified somewhat by the comparison to the holiday week, the level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit.”

Applications to refinance, however, saw a drop, regardless of record-low interest rates. MBA reports that the Refinance Index decreased 1 percent to its lowest point since the end of June.

Hmm. Wonder why.

Well, I can tell you one reason. With home prices so low, a ridiculous amount of homeowners owe more on their mortgages than their homes are worth, so the banks won’t let them refinance.

Still, homeowners are managing. The mortgage delinquency rate fell in the third quarter to 9.13 percent, the lowest since the first quarter of 2009.

“For the first time during the housing downturn,” said Freddie Mac‘s Frank Nothaft, “the overall delinquency rate is lower than it was a year earlier.”

Categories: Economy, Mortgages

About The Author

Tracey

Read All Stories By Tracey

2 Comments

1

This has all come about because of the easy access to credit card lenders funds, which are put under our noses at every turn. You cannot even go to a supermarket or shopping mall without being accosted by some credit card sales representative offering you the chance of spending someone else’s cash.

2

This is a wonderful posting. The things mentioned are unanimous and needs to be appreciated by everyone.

Leave a Comment

Copyright © 2008-2017 mRELEVANCE, LLC | Chicago Real Estate News | Chicagoland Real Estate Forum. All rights reserved. Thank you for visiting Chicago Real Estate News Chicagoland Real Estate Forum, Real Estate Listings and Information Provided by MLC Realty, Inc.
Internet Marketing by Marketing RELEVANCE

Equal Housing Opportunity

1819 W Grand Ave | Chicago, IL 60622