US Home Demand On the Rise
The Mortgage Bankers Association (MBA) released its seasonally adjusted index of mortgage applications on Wednesday. The report showed a rise in both purchase and refinance loans, climbing 5.8 percent combined for the week ending November 5th. It was only the third time in eight weeks the industry group reported a rise in applications. The four-week moving average, meanwhile, a measure designed to smooth out seasonal volatility, dropped 1.9 percent from the week prior.
The seasonally adjusted index of refinance applications, according to the MBA's report, climbed 6 percent, while the seasonally adjusted index of purchase applications, commonly viewed as an early indicator of home sales, rose 5.5 percent. Borrowing costs on 30 year fixed rate mortgages, the group reported, averaged 4.28 percent, excluding fees, which was unchanged from the previous week.
Interest rates were also well below year-ago level of 4.9 percent, averaging 4.21 percent for the week ending October 8th, the lowest ate in the 20-year history of the survey.
The US housing market has been struggling since the expiration of federal tax credits for homebuyers earlier this year. To qualify for the
incentives, buyers had to sign purchase agreements by April 30th and close by June 30th, though the closing deadline was later
pushed back to September 30th. Scores of homeowners across the country are mired in "underwater" mortgages, where they owe more on the home than its current value. This negative equity prevents many homeowners from qualifying for refinancing and also makes it difficult to sell.
|
Twitter
Facebook
Del.icio.us
Digg