U.S. mortgage applications down 12% last week: MBA

[DA60]

'The total number of mortgage applications filed in the U.S. last week fell 12% from the prior week as interest rates jumped to their highest level in two years, the Mortgage Bankers Association said Wednesday.

The refinance index decreased 16% for the week ended June 28 from the previous week, according to the weekly survey covering more than three-quarters of all U.S. residential-mortgage applications. MBA also reported the seasonally adjusted purchasing index slipped 3% from a week earlier.

Interest rates have increased in recent weeks amid stronger economic data, curbing some individuals' appetite to buy a new home. Mike Fratantoni, MBA's vice president of research and economics, said fewer homeowners have an incentive to refinance at the current interest rates. Refinance-application volume dropped more than 15% last week.'

U.S. mortgage applications down 12% last week: MBA - MarketWatch

 

[imagep]

'The total number of mortgage applications filed in the U.S. last week fell 12% from the prior week as interest rates jumped to their highest level in two years, the Mortgage Bankers Association said Wednesday.

The refinance index decreased 16% for the week ended June 28 from the previous week, according to the weekly survey covering more than three-quarters of all U.S. residential-mortgage applications. MBA also reported the seasonally adjusted purchasing index slipped 3% from a week earlier.

Interest rates have increased in recent weeks amid stronger economic data, curbing some individuals' appetite to buy a new home. Mike Fratantoni, MBA's vice president of research and economics, said fewer homeowners have an incentive to refinance at the current interest rates. Refinance-application volume dropped more than 15% last week.'

U.S. mortgage applications down 12% last week: MBA - MarketWatch

So is that a good thing or a bad thing?

Seems to me that if mortgage applications drop, interest rates will reach an equalibrium point shortly.

 

[KevinKohler]

That, or banks will continue to do what they've been doing for going on a decade now...just sitting on properties and letting them rot.