Future Mortgage Activity Is Gloomy
-- October 8, 2003
An index that measures the volume of US mortgage applications rose for the second week in a row last week -- but that's not a reason to start a party yet. In fact, last week's rise in the Mortgage Bankers Association application index to 817.3 from 707.2 in the prior week can't mask the negative trend. Take a look ...
As you can see from this chart, the overall trend in mortgage applications -- including both purchases and refinancings -- is clearly negative. In fact, since May 30, the index has tumbled a massive 56%!
So, even though mortgage rates inched back down a bit, there still isn't a huge reaction from homeowners who missed out previously. That tells us that most of the people who wanted to refinance or purchase a home did so already.
Home Loan Applications Rise