As the Dow Jones takes a dip in trading based on international investors selling off investments in the subprime but high yielding home loan market, we see applications for new mortgages surge???? If you like wooden roller coasters that drop and make you feel like your stomach is in your throat than the next 6 months is for you.... Below is a report that came out on 8/8/07 the day before the Dow Jones average adjusted downward 380 points amidst fears of further bad reports from mortgage lenders....
Oh and by the way the word on the street is getting louder that Bank of America is really ready to make the big move to take over Countrywide....
NEW YORK - Mortgage applications rose for the first time in three weeks as interest rates fell sharply and demand surged for home purchase and refinance loans, an industry group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Aug. 3 rose 8.1% to 656.5, highest level since early June.
The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 1.2% to 626.0.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.41%, down 0.09 percentage point from the previous week. Interest rates were below year-ago levels of 6.45%.
The MBA's seasonally adjusted purchase index, widely considered a timely gauge of U.S. home sales, rose 7.4% to 447.4, well above its year-earlier level of 388.9.