Home Refinancing Demand Drops
by admin ~ June 10th, 2010.The mortgage industry was starting to enjoy the rising demand of loan applications as mortgage refinancing activity had seen a nice streak for rising refinance applications. The Mortgage Bankers Association yesterday released its Weekly mortgage application survey for the week ending June 4, 2010. The MBA application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. Economists will continue considering this new data as consumer demand for mortgage loans. In an era for low mortgage rates, a trend of increasing refinance loan applications implies consumers are seeking out a lower monthly payment which can increase disposable income and consumer spending. The home loan applications continue their declining trend indicating falling interest in home buying. This is not good news for the housing or mortgage industry.
The Market Composite Index, a measure of mortgage loan application volume, dropped12.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 21.1% compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 0.7%. The Refinance Index fell 14.3% from the previous week. The four week moving average is up 3.6% for the Refinance Index. The mortgage refinancing activity decreased to 72.2% of total home loan applications from 73.8% the previous week. This is the first drop for home refinancing activity in five weeks. Also read related article > Credit Problems Hindering Mortgage Refinancing
