Mortgage activity tumbles
-- December 10, 2003
Super-low interest rates have been around for a while -- but that's sure not putting any spice back into mortgage activity. In fact, an index of mortgage application activity plunged 12.2% last week to 601.6 -- its lowest level since June 14, 2002!
As this chart clearly shows, the trend in mortgage application activity is negative: Mortgage activity now stands at 68% below its May peak -- and 30% below its year-ago level, according to the Mortgage Bankers Association.
But that's not all: The refinancing component of the index took a whopping 15% hit last week - and that's on top of the nearly 20% tumble it took the week before. With refinancing activity one of the biggest drivers behind consumer spending, the decline in the refi index is ominous indeed.
Mortgage Requests Fall Near 18-Month Low