The housing market in the past year has been a series of small hits and large misses. Banks, buyers, sellers and real estate agents alike are awaiting a return to at least some decent activity. Some signs of life are beginning to show. Home loan application submissions for home buying have increased recently. There was also a change in the number of application submissions for loan modification. Those actually dipped. The majority, far and away, of home loan activity is still for modifying mortgages into low cost loans.
More mortgage loan application submissions on record
The number of mortgage applications for the purchase of a new home has increased. The Mortgage Bankers Association recorded an increase of 6.3 percent in application submissions for a purchase, according to Reuters, which is the first significant increase since May of this year. That said, things aren’t that simple. That said, the number of application submissions mortgage lenders are getting are at incredibly low levels. Mortgage loan applications rates are down about 40 percent since May 2009.
Most application submissions are for modification
The majority of the applications are for mortgage loan modification. Those applications have declined by 3.1 percent since May of this year. That said, they are still about 82 percent of all home loan applications. Currently, mortgages of nearly any configuration are low interest loans, as the rate for 30-year fixed mortgages is at 4.5 percent, a 20 year low. 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 great for people planning to refinance. However, since finance loans are so much harder to access, it is difficult for many to reap the benefits.
Little stimulated
The stimulation programs have not had the effects that individuals were hoping for. Recovery will be from the bottom up, as the tax credit only worked for a while and the federal refinance program is a failure. People will only buy homes if they feel stable enough to buy.
Further reading
Reuters
reuters.com/article/idUSNLL7KE6FT20100908
