Mortgage application rises by 5.6% in August 14 week

Shared by Jenkin7 on Thu Aug 20, 2009 2:45 am
Amidst the gloom of recession, the US mortgage market seems to have started to show signs of hope as the Mortgage Bankers Association's mortgage market index increased by 5.6% in August 14 week. The number of people applying for a mortgage loan has shown a growth, even as the number of people refinancing their current homes rose up by 6.9%. Construction of single family homes is also at its peak since October, 2008. Industry experts attribute this increase in mortgage application to factors like sliding real estate prices and Govt's $8,000 tax credit for first time buyers. The dropping interest rates, with the average for 30-year mortgages falling to a 5-week low 5.15%, have also contributed to this rise in mortgage application to a great extent. Source: http://www.dailyherald.com/story/?id=314770

Community Members Opinion

sara

Joined: 05 Jul 2006

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Location: New Brunswick, New Jersey

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Posted: Thu Aug 20, 2009 3:10 am Post subject:

It's really a great news that mortgage applications are rising in the country. This will help in stabilizing the real estate market in the long run. Not only the mortgage applications have shown a rise, refinancing mortgages on existing homes have also increased. The rise of mortgage applications can also be attributed to the decrease of interest rates to 5.15% excluding fees - a five week low.

Samantha

Joined: 16 Sep 2005

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Location: MASSACHUSETTS

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Posted: Fri Aug 21, 2009 5:11 am Post subject: fall in housing prices leads to higher loan applications

The slowdown in the housing prices is one of the primary reasons behind the rise in mortgage applications. Homebuyers are attracted to the first-time buyer tax credit worth $8000 offered by the Obama Administration (as part of the Economic Stimulus Plan). Another reason behind the rise in loan applications is the drop-down in mortgage rates which have hit five-week low. Well, whatever be the reasons, let's hope the increase in mortgage applications will help restore the housing market. _________________ Know how to compare lenders with mortgage booklet


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