Mortgage Applications and Refinance Activity on the Rise

MA real estate attorneys Crowley &; Cummings found the following article concerning an increase in home mortgage refinance activity and wanted to share it here. The full article follows below.

Home Mortgage Refinance Activity Skyrocketed Last Week
By Michael Kraus
August 18, 2010

The Mortgage Bankers Association released its Weekly Mortgage Applications Survey today. Total mortgage applications increased 13 percent from the previous week. Refinance activity surged 17.1 percent from the week prior, reaching the highest levels since May 2009. Purchase applications decreased 3.4 percent from the previous week. Refinances made up 81.4 percent of all mortgage applications.

Refinance activity increased on the strength of current mortgage rates, which are at an all-time low. According to Freddie Mac, the average mortgage rate on a 30 year fixed rate mortgage was 4.44 percent last week, while 15 year fixed rate mortgages averaged 3.92 percent. This is the sixth straight week that mortgage rates have set record lows.

Purchase applications have been hurt by the low demand for houses resulting from high unemployment and the generally poor economy. Purchase activity has been more or less level for three months, corresponding roughly with the expiration of the first time home buyer tax credit. With each economic report it becomes increasingly clear to me that the first time home buyer tax credit was bad policy which only prolonged the period of time it took for the market to correct.

Low demand for housing combined with the rising supply of homes on the market (lead by the burgeoning inventory of distressed and foreclosed homes) means that there will likely be downward pressure on home prices for the remainder of the year, if not longer.


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Crowley & Cummings are real estate attorneys located in Dedham MA specializing in real estate closings, title examinations, complex title issues, purchase & sale agreements, condo conversions, and other related services. They service lenders and mortgage brokers, real estate agents, as well as buyers and sellers in Massachusetts, New England, and throughout the US. To learn more visit them online at www.CrowleyCummings.com.