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Mortgage Applications Down

The number of people applying for mortgage applications decreased 5.7 percent and is at its lowest point since February 1997.  When you account for loans for purchases and refinancing, volume dropped by 12.2 percent during the week ending June 4.

Looks like homebuyers have not returned to the market following the expiration of the homebuyer tax credit at the end of April, since purchase applications are now 35 percent below their level a month ago.

To me this news is no surprise since the tax credit pushed up the spring and summer markets. In any case, the lack of refis in a historically low mortgage market is nearly as bad a sign as the now 5-week drop in purchase applications. It seems that government involvement in the housing market helped in the short term, but how will it effect us down the road?

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June 12, 2010 - Posted by | Uncategorized | ,

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