The housing market has been abysmal. There have been some hits, and some big misses. The real estate industry, and especially people looking to purchase or sell homes, banks planning to lend, and agents seeking to get business going again, and it can’t happen a moment too soon. All isn’t lost though. You will find some signs of activity. Some data has just been released for the home loan industry. Mortgage applications for purchases have increased. There was also fewer applications for mortgage refinancing. However, applications to modify existing loans into low interest loans, or at least lower cost, are still the majority of mortgage loan activity, which is considerably low.
Filings for mortgage loan application submissions improve
You will find more people putting in mortgage application submissions. Much more of them are for purchasing a fresh home than have been filed for a while. 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 improve since May of this year. However, it is not exactly great news. That said, the number of application submissions mortgage lenders are getting are at incredibly low levels. Since May 2009, mortgage loan application rates have fallen by 40 percent.
Majority of applications are for modification
Mortgage modification is nevertheless sort of a big deal. In fact, it accounts for the vast bulk of mortgage application submissions. Those applications have declined by 3.1 percent since May of this year. That said, they’re still about 82 percent of all home loan application submissions. New mortgages would be low interest loans. The rate for a fixed 30 year is 4.5 percent. The MBA has been keeping track of these figures since 1990. Current rates are about as low as have ever existed. The low rates make for a good chance to refinance. Credit is still incredibly hard to come by, though. Getting the benefit of those low rates could be difficult for a lot of people.
The stimulation seems to have helped no one
Hardly anyone thinks the stimulation for housing worked. There is little to prove it was incredibly effective. The federal refinance program barely works. The tax credit only boosted sales for just a little while, so recovery is going to be slow and it will go from the bottom up. There has to be more stable income for individuals. That way they’ll feel confident enough to purchase.
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Reuters
reuters.com/article/idUSNLL7KE6FT20100908
