 | Daily Real Estate News | July 1, 2009 |
Mortgage Applications Hit 8-Month Low
Mortgage applications declined 18.9 last week compared to the previous week, hitting the lowest level since Nov. 21, 2008, according to the index compiled weekly by the Mortgage Bankers Association.
Application volume decreased from 548.2 the previous week to 444.8 last week on an adjusted basis. On an unadjusted basis, the index declined 18.5 percent and was down 7.4 percent compared with the same week a year ago.
The decline was driven by refinances, which fell 30 percent compared to the previous week. The purchase index was down 4.5 percent.
"Rising unemployment, concerns about job security, potential buyers' inability to sell their existing homes and problems with appraisals coming in too low are all weighing on demand," says Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley.
In the meantime, mortgage rates declined:
- 30-year fixed-rate mortgages decreased to 5.34 percent from 5.44 percent.
- 15-year fixed-rate mortgages decreased to 4.81 percent from 4.93 percent.
- 1-year ARMs decreased to 6.52 percent from 6.54 percent.
Source: Mortgage Bankers Association and Reuters News (07/01/2009)
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