U.S. Mortgage Applications Fell 5.6% Last Week On Purchases Mortgage applications in the U.S. fell last week, this is due to the biggest drop in applications for purchase of nearly a year. The index of the Mortgage Bankers Association of loan applications fell 5.6 percent in the period ending April 22nd. The group's gauge of purchases fell down by 14 percent, the biggest drop since May and the refinancing fell 0.6 percent. The prospect of increase in foreclosures and further declines in house prices may be keeping buyers on the sidelines. The unemployment rate at 8.8 percent and stricter lending requirements means a recovery of the housing market may take years to unfold. "The housing market has basically hit bottom, but it will not recover anytime soon," Harm Bandholz, chief economist of the UniCredit Group in New York, said before the report. "The housing market is just treading water ". The average rate on 30-year fixed loan fell to 4.80 % as compared to last weeks ago 4.83 %, the mortgage bankers group said. Financial expenses were 4.21 % in October, a record low for the year. The S & P / Case-Shiller index of property values in 20 cities fell 3.3 percent in February from a previous year, the group said yesterday in New York. The guage has fallen 33 percent since its peak in July 2006, almost as much as through the recession in April 2009.
The Realty markets for single family homes "were either little changed from lower levels or continued to weakened in all districts," in February and March, according to the Federal Reserve's Beige Book. For builders, "construction season in spring is likely to be slower than expected," the Fed said in its report on April 13 Regional Report. Home Sales Previously owned home purchases rose 3.7 % to 5.1 million in March, the National Association of Realtors report showed April 20. All cash deals for which no lending is required, accounted for 35 percent of transactions, where as distressed sales were 40% of the total, the group said. Builders see little reason for optimism. KB Home (KBH), the Los Angeles based builders that targets the first home buyers, this month reported a big loss for the quarter ended Feb. 28. To know more about Gainesville Mortgage, Reverse Mortgage or Refinancing feel free to visit : http://www.leonmortgage.com Article Source - http://gainesvillemortgage.wordpress.com/2011/04/28/u-s-mortgage-applications-fell-56-last-week-on-purchases/