Mortgage sales and applications saw a big drop through all of April. There’s been a huge growth on external economies (mainly european), this normally leads to an increase in local concerns and fears. As a consequence, we’re seeing an increasing drop on new mortgage acquisition and even less activity on the refinancing area.
“Borrowers remain extremely sensitive to rate changes (…) The strong economy and job market is keeping buyer interest high, but rising mortgage rates could add pressure to the budgets of some would-be buyers.” said a representative of the Mortgage Bankers Association (MBA).
But overall, the stability of the full housing market hasn’t weaken. Prices that had reached an all-time high on selected home markets have started to lower, which is a good sign on the larger scale.
Like I’ve said in previous posts, I really think we’re about to jump into a recession, that will pull levels of confidence down to the ground and make mortgage acquisition even more difficult in the coming months, unless the government is willing to intervene with a more direct approach to the price of local housing markets.