High unemployment and foreclosures remain major hurdles to home buyers
Demand for loans to purchase U.S. homes sank to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates, the Mortgage Bankers Association said on Wednesday.
Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the industry group said.
Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent.
Average 30-year mortgage rates edged up 0.01 percentage point to 4.69 percent, but were near the record low of 4.61 percent set in March 2009, based on MBA records dating back to 1990.
Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance.
But high unemployment and foreclosures remain major hurdles, and worries that prices could dip further are also keeping many potential buyers on the sidelines.
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3 comments:
They're turning everyone down for loans , no wonder another Obama blunder ! hey that rhymes ...
hard to purchase a home when you afraid of losing your job, or you just don't have one. These stories are a "well duh" moment everytime.
Well, for those that have solid credit and a good job, it's a great time to buy. I know more then a few people either upgrading to a larger home, or purchasing their first homes. A 1% point difference on a 30 year, 250K mortgage is 50K less in interest payments(the federal gov't is thinking about doing away with the home mortgage deduction btw).
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