Mortgage Applications Drop heavily
Perhaps more consumers are exploring mortgage acceleration, or so it would appear after recent news from the housing wire:
Refinancing activity continued its recent freefall, dropping another 16.7 percent last week, the MBA said; refis fell 20.2 percent one week earlier — meaning that refinancing activity has fallen nearly 34 percent in the past two weeks alone.
Purchase activity, often seen by economists as an important directional indicator for housing, also fell last week. The MBA reported that its index of purchase applications fell 4.8 percent, marking the third straight week of declines for purchase applications. FHA purchases also fell for the second consecutive week, dropping 3.7 percent after a torrid run-up in application volume in the back half of the first quarter of 2008.
Reflecting the dearth of refinancing activity, refinance share of total applications decreased to 45.7 percent of total applications from 49.2 percent the previous week, the MBA said. ARM share continued its steady decline as well, decreasing to 5.9 from 6.6 percent of total applications from the previous week.
The end results of this mortgage meltdown may be quite sour, and leave little hope for this nation’s financial future.
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