Increased Lending Rates Are Cutting Into Mortgage Application According to MBA

August 12, 2009 by · Leave a Comment
Filed under: Real Estate News 

Business Journal, Milwaukee – Increased lending costs put a crimp in mortgage applications last week.  The Mortgage Bankers Association’s index of applications to purchase or refinance a home fell 3.5 percent from the previous week.

The refinance index fell 7.2 percent in the week ended Aug. 7, reversing the 7.2 percent gain made in the previous week. The purchase index, however, increased 1.1 percent – the third gain in the last four weeks, according to the MBA.

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U.S. home mortgage applications fall almost 19% in June 2009

July 1, 2009 by · Leave a Comment
Filed under: Real Estate News 

With interest rates creeping back up to previous levels, it is no surprise that refinance activity has slowed considerably as of late.  In the article they state the the “5%” level is where the rates need to be for the market to maintain the activity that began when the government started aggressively pushing interest rates down to try and decrease the amount of defaults and foreclosure that have been associated with these sub-prime and Alt-A loans resetting to higher rates that are tied to the LIBOR or 10-year treasury bond.

News (Reuters):

U.S. mortgage applications plunged to a seven-month low last week as demand for home refinancing loans tumbled 30 percent, data from an industry group showed on Wednesday.

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