Mortgage Purchase Applications Off Of Their 8-Week Low

By
Real Estate Broker/Owner

The Mortgage Bankers Association announced on Wednesday that the mortgage purchase application rose 5% to 264.3 despite the 30-year fixed rate mortgage jumping from 4.62% to 4.79%.

While the reading of 264.3 is an increase from the previous weeks' reading which was an 8-week low, the 4-week moving average is still down -3.1% for the mortgage purchase application index. 

The important question that these numbers bring up is whether or not we will see a surge in home sales during the summer season as many people have been hoping for.  What we do know is that as major foreclosure moratoriums have expired in March, we can expect to see a rise in the supply of homes for sale during the next couple of months.  Unless there is a surge in demand to absorb this new supply coming to the market, we can expect to see accelerated home value declines in the second half of this year.

 

 

Comments (3)

Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Mark - While there may be some parts of the country seeing a decline in apps the past month, by personal apps are increasing.  Maybe it's just my market.  While the rest of the country may be experiencing a buyers market, here in SoCa, I'm seeing just the opposite and buyers are going frantic and finally getting their butts off the fence.  FINALLY!

May 07, 2009 04:01 PM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I have certainly seen things picking up for me and I'm hoping that continues in to the summer. But, I sure hope you are wrong about the surge of foreclosures hitting the mark. I know that a lot of short sales got closed in that time and I'm hoping that help keep a few of those homes out of the REO departments hands.

 

May 08, 2009 12:03 PM
Mark MacKenzie
Phoenix, AZ

Donne:  We are seeing this too, unfortunately CA is one of the few markets we are seeing this.

Todd:  I'm not sure if you have seen this data, this graph represents the number of mortgages that are going to be resetting over the next couple of years.  Some of these may be difussed by refinances, some of it may be accelerated by job losses.  But either way, we still have a ways to go:

May 09, 2009 01:07 AM