This is not surprising news, and I don’t find it too alarming at this point. We have had a turbulent couple weeks in the stock market bring uncertainty to many households. We are back to 1996 levels on mortgage applications. What is surprising is that it is the complete opposite of record low interest rates…. which puts into perspective the extent of the uncertainty out there…
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2.4 percent in the week ended Aug.19.
The seasonally adjusted gauge of loan requests for home purchases tumbled 5.7 percent to its lowest level since December 1996, the MBA said.
“This decline impacted borrowers across the board, with purchase applications for jumbo loans falling by more than 15 percent and purchase applications for the government housing programs falling by 8.2 percent.” The refinance share of mortgage activity increased to 79.8 percent of total applications from 78.8 percent the week before.
Fixed 30-year mortgage rates averaged 4.39 percent, up from 4.32 percent.
Calculated Risk is great at graphing this information. Once again another great chart from Calculated Risk showing the mortgage applications:
- Delinquencies Rise, Foreclosures Fall in Latest MBA Mortgage Delinquency Survey (craigkamman.wordpress.com)