Mortgage Applications Fell Last Week despite Low Rates

By admin

Banking Housing

(From cnbc.com) Applications for U.S. home mortgages slipped last week, led by a drop in purchase demand as low interest rates were not enough to entice home buyers, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2.6 percent in the week ended Dec 16.

The MBA’s seasonally adjusted index of refinancing applications dipped 1.6 percent, while the gauge of loan requests for home purchases lost 4.9 percent.

“Remarkably low rates are not enough, as many homeowners continue to hold back due to lack of equity in their properties, poor credit and a weak job market,” Michael Fratantoni, MBA’s vice president of research and economics, said in a statement.