Economist's Commentary: April 23, 2008

Quick Take on the Economy: April 22, 2008

By Lawrence Yun, NAR Chief Economist

Applications for home purchases fell 6 percent, while applications for refinances fell 20 percent in the latest week. There was no notable movement in mortgage rates last week.
Purchase applications are down 13 percent from a year ago, despite a doubling in activity on government backed FHA loans. Refinance activities are higher by 10 percent, with FHA activity tripling.
Applications do not mean approvals. The recent trend has been such that home sales (on a year ago basis) have been down more than is implied by mortgage applications.

A greater use of FHA loans is moving people away from high-interest subprime loans.
Expect no notable pick-up in closed home sales in the near term.

This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >

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