Home Equity Loan Application Levels Decline
by admin ~ July 17th, 2010.Typically in summer home equity loan application levels rise as homeowners like to get access to cash for financing home improvements and vacations. In 2010 circumstances for these once popular second mortgage programs have changed. Home equity loan guidelines have tightened so borrowers need more equity and higher credit scores to qualify. According to Sean Dawson a spokesman for Smart Home Equity, ” Home values have yet to return to 2005 levels, borrowers are finding it increasingly difficult to qualify for a home equity line of credit or even a fixed rate equity loan.” Home equity rates remain at record lows even though the volume of home equity applications has plummeted over the last few years.
Mortgage Bankers Association reported that the overall mortgage loan application index dropped 2.9%, adjusted for seasonal factors and the July 4 holiday, and the four-week moving average increased 1.5%. The MBA’s survey covers more than half of all U.S. retail residential mortgage applications. The mortgage refinance report dropped 2.9% last week from a week earlier as its gauge for home buying applications fell 3.1%.
Mortgage rates on 30-year fixed-rate home loans averaged 4.69%, up from 4.68%, while the average for 15-year fixed-rate mortgages rose to 4.12% from 4.11%. The one-year ARM average was unchanged at 7.2%. Adjustable-rate mortgages made up 5.5% of activity last week, rising from 5.4% a week earlier.
