Housing Industry Gets Wake Up Call After Purchase Apps Fall To 13 Year Low
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 14, 2010.
Michael Fratantoni, MBA's Vice President of Research and Economics summed up the survey:
"Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009....However, refinance borrowers did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks."
Thanks to realtor Paul Smith for this info. Paul is an excellent buyer's agent.