Loan Applications Down Nationwide
The Mortgage Bankers Association released new numbers this week showing loan applications are down 40% from this time last year and refinancing applications are down for the first time in 6 weeks. Refinancing is down 3% and home purchases are down 37%.
A 30-year-fixed mortgage is averaging about 4.3 percent now, compared to about 5 percent a year ago. There is about a 10 percent chance rates will go even lower, and a 90 percent chance they will rise in the coming months. Many people who have jobs, good credit, equity in their homes, and interest rates high enough to warrant refinancing, either have refinanced or are in the process of getting a lower rate.
Lack of consumer confidence is driving force that led to almost a 40 percent drop in buying activity from a year ago. Consumers are worried about things like a double-dip recession. People don't have the confidence to buy big-ticket items like homes. Overall about 91 percent of the people still have jobs and about 9 percent are unemployed, when you look at the national averages.
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