not apply, yourself, for a new mortgage @ historically low rates.
Almost over night the apps shifted from purchases of Buyer Tax Credit homes...
to refi's, which is very interesting.
The index fell 34% from the week ending April 30th through the week ending May 14th -- in just two weeks
Refi's have been declining for quite some time, which was puzzling.
With the very low interest rates, why weren't troubled borrowers trying to refi???
Too underwater, out of work, terms too tight..., something was wrong!!!
But, what we NOW are seeing is an almost total collapse of new aps...
which suggests to U.S., very strongly, that new "sales" are going to drop like a brick, now.
The foreclosures, short sales & walkaways are NOT going to go down.
So..., prices must. But, how far?
Who in Hell..., aka the sand states..., knows.
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Home Buyer Credit Expiration Sinks Mortgage Applications by 27%
Anyone who thought the housing market might be able to continue its positive trend without the home buyer credit got a swift dose of reality today. The Mortgage Bankers Association reported that mortgage applications for home purchases fell off a cliff, declining by 27% last week to a level not seen since May 1997. Clearly, the housing market is already missing the home buyer credit.
First, for a little perspective, here's mortgage applications for new purchases since 1990:
The red line is the index, and the bright green line shows its level during the week ending May 14th. The chart shows how incredibly high applications were in 2005, and how low they dropped last week, after rising significantly, with consumers anticipating the credit's expiration.
The index fell 34% from the week ending April 30th through the week ending May 14th -- in just two weeks
The index fell 34% from the week ending April 30th through the week ending May 14th -- in just two weeks
http://www.theatlantic.com/business/archive/2010/05/home-buyer-credit-expiration-sinks-mortgage-applications-by-27/56962/
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Mortgage Purchase Applications Decline Further, Lowest Levels Since April 1997
The Refinance Index increased 17.0 percent from the previous week. This third consecutive increase marks the highest Refinance Index recorded in the survey since October 2009.
The seasonally adjusted Purchase Index decreased 3.3 percent from one week earlier and is the lowest Purchase Index observed in the survey since April 1997
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Bloomberg
U.S. Mortgage Applications Index Rose 11.3% Last Week
Purchase applications fell to the lowest level since 1997.
Refinancing surged 17 percent, the most since February.
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Mortgage Rates Fall to 4.8%, Home Buyers Still Scarce
new-purchase applications also fell again to a 13-year low.
That helped refinance activity increase by 17% from the previous week, the third straight weekly increase.
But purchase activity is down 27% over the past four weeks
—a sign that the $8,000 tax credit that expired at the end of April simply moved demand forward.
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Mortgage Rates Moving Back Higher Today
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