Wednesday, Aug 08, 2007
Big fuss about a US crash for nothing!
Bloomberg: U.S. MBA's Mortgage Applications Index Rose 8.1%
Mortgage applications in the U.S. rose last week by the most since January, as cheaper borrowing costs encouraged more Americans to seek loans for home purchases and refinancing.
A resilient labor market and lower home prices may support sales and eventually help reduce the glut of unsold properties, economists said. A report last week showed Americans signed more contracts to buy previously owned homes in June, a sign the weakness in the housing may not get much worse.
Posted by benstar @ 05:55 PM (130 views) Add Comment
2 Comments
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1. Timm said...
Oh for goodness sake.
It says in the title this is for applications, not advances. Of course there are more applications: as lenders tighten up, more applications are turned down. So the applicants apply to another lender, and another, until they get the loan or give up.
2. night said...
"The share of applications for refinancing rose to 39.9 percent from 39.4 percent the prior week."
"Purchase applications may be elevated because borrowers who had previously been rejected are reapplying for loans, and some consumers are applying to several lenders in hopes of getting approved by at least one, economists have said."
Applications does not equal sales. If those "economists" are right, then there are more people ready to start defaulting on their mortgages and desparately trying to remortgage to bail themselves out. Time will tell...