The recent rush to get a mortgage has paused, or possibly stopped.
Mortgage applications are back to February-like levels. The Mortgage Bankers Association announced that application activity declined 7.2% since last week.
Rates jumped over the last few weeks, so refinancing is less and less attractive. Purchasing a home is more difficult with a higher rate, as monthly payments will increase (use a mortgage calculator to see what higher rates do to a loan).
Appraisals are another problem. Some find that their homes are not valued high enough to refinance, so they have to come up with more money or skip the deal altogether. Rules on appraisals changed recently, and banks are asking appraisers to be more conservative after getting stung by falling prices.
Further reading:
Comments
No comments yet. Leave a Comment