It seems that forclosures maybe coming to hault and the houses are being bought up. If this continues, that means the old houses will be sold, and new construction will start again which will end up raising interest rates on mortgages. You should ReFi now!
Mortgage applications in the U.S. fell last week as a jump in borrowing costs slowed refinancing.
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan decreased 3.5 percent to 499 in the week ended Aug. 7, from 517.3 in the prior week. The group’s refinancing gauge dropped 7.2 percent, while the index of purchases rose 1.1 percent.
Foreclosure-driven declines in prices are bringing more homes within reach of buyers who qualify for credit, helping stabilize the worst real-estate slump in seven decades. The number of houses on the market continues to outstrip demand even as sales increase, signaling a rebound may take time to develop.
“Housing is on track for a gradual recovery,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report. “Affordability may have improved, but access to credit is still tight. The housing inventory overhang will remain an obstacle.”
The mortgage bankers’ refinancing gauge decreased to 1,853.8 from 1,996.7 the previous week, today’s report showed. The purchase index climbed to 267.2, the highest level in more than a month, from 264.4.
The share of applicants seeking to refinance loans fell to 52.3 percent of total applications last week from 54.2 percent.
Rates Rise
The average rate on a 30-year fixed-rate loan increased to 5.38 percent last week from 5.17 percent the prior week. The rate reached 4.61 percent at the end of March, the lowest level since the group’s records began in 1990.
At the current 30-year rate, monthly borrowing costs for each $100,000 of a loan would be $560, or about $77 less than the same week a year earlier, when the rate was 6.58 percent.
The average rate on a 15-year fixed mortgage rose to 4.71 percent from 4.60 percent. The rate on a one-year adjustable mortgage climbed to 6.71 percent from 6.67 percent.
Some company executives see signs the housing slump is easing. Realogy Corp., the real estate broker acquired by Apollo Management LP in 2007, said its second-quarter loss narrowed after it cut expenses to offset a drop in revenue.
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan decreased 3.5 percent to 499 in the week ended Aug. 7, from 517.3 in the prior week. The group’s refinancing gauge dropped 7.2 percent, while the index of purchases rose 1.1 percent.
Foreclosure-driven declines in prices are bringing more homes within reach of buyers who qualify for credit, helping stabilize the worst real-estate slump in seven decades. The number of houses on the market continues to outstrip demand even as sales increase, signaling a rebound may take time to develop.
“Housing is on track for a gradual recovery,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report. “Affordability may have improved, but access to credit is still tight. The housing inventory overhang will remain an obstacle.”
The mortgage bankers’ refinancing gauge decreased to 1,853.8 from 1,996.7 the previous week, today’s report showed. The purchase index climbed to 267.2, the highest level in more than a month, from 264.4.
The share of applicants seeking to refinance loans fell to 52.3 percent of total applications last week from 54.2 percent.
Rates Rise
The average rate on a 30-year fixed-rate loan increased to 5.38 percent last week from 5.17 percent the prior week. The rate reached 4.61 percent at the end of March, the lowest level since the group’s records began in 1990.
At the current 30-year rate, monthly borrowing costs for each $100,000 of a loan would be $560, or about $77 less than the same week a year earlier, when the rate was 6.58 percent.
The average rate on a 15-year fixed mortgage rose to 4.71 percent from 4.60 percent. The rate on a one-year adjustable mortgage climbed to 6.71 percent from 6.67 percent.
Some company executives see signs the housing slump is easing. Realogy Corp., the real estate broker acquired by Apollo Management LP in 2007, said its second-quarter loss narrowed after it cut expenses to offset a drop in revenue.
