Mortgage Slowdown Refinancing Applications drop 22.9 percent last week

It is no secret that the housing sector is in a bit of a “slowdown”. The Mortgage Bankers Association, who maintains a variety of indices to measure activity, released a report Thursday that declared applications have decreased by 14.1 percent in July.  In addition to the July decline of new applications, refinancing application slipped 22.9 percent last week.

The current trends have really begun to stir originators as well as lending institutions. The MBA suspects that potential home buyers are viewing the record number of foreclosures as their opportunity to ride the decline and jump in as prices drop in order to obtain more favorable conditions.

Meanwhile, single-family homes in some major metro areas have declined nearly 16 percent in value since this time last year.  So don’t expect your banker to give you a free toaster or Panasonic camera the next time you close or finish a refinancing.  They are looking to provide incentives to get people in the door, but they don’t necessarily have the extra funds to spend to do that!

Source: MSNBC

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