Few victories can be pointed to within the housing industry. Real estate agents, homebuyers, home sellers, and banks are all patiently awaiting the return to health. It’s not as though the industry has gone comatose; it’s just slowed down. There was a recorded uptick within the number of new mortgage loan applications for purchasing a home. Also, fewer applications for mortgage refinancing were recorded. However, applications to modify existing loans into low interest loans, or at least lower cost, are still the bulk of home loan activity, which is significantly low.
Much more mortgage applications
Much more people have been filing home loan applications for purchasing a new home. Mortgage loan applications are tracked by the Mortgage loan Bankers Association, and they have noted a 6.3 increase in application submissions for a home purchase, which is the largest level since May, according to Reuters. That said, things aren’t that simple. The number is up. The numbers of applications that loan lenders received are at record low levels though. Mortgage loan applications rates are down about 40 percent since May 2009.
Modifications are the bulk of activity
The majority of the applications are for mortgage modification. Those application submissions have declined by 3.1 percent since May of this year. That said, they are still about 82 percent of all mortgage application submissions. New mortgages would be low interest loans. The rate for a fixed 30 year is 4.5 percent. The MBA has been keeping track of these figures since 1990. Current rates are about as low as have ever existed. This is good for new borrowers. That is also good for individuals seeking to refinance. Credit is nevertheless incredibly hard to come by, though. Getting the benefit of those low rates could be difficult for lots of people.
Didn’t we offer a stimulus?
The stimulus seems to not have worked. Recovery can be from the bottom up, as the tax credit only worked for a while and the federal refinance program is a failure. There has to be more stable income for individuals. That way they’ll feel confident enough to buy.
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Reuters
reuters.com/article/idUSNLL7KE6FT20100908
