Mortgage applications drop

October 28th, 2009, 7:13 am · 6 Comments · posted by Mathew Padilla

The Mortgage Bankers Association reported today its indexes of loan application volume dropped last week even as interest rates dipped slightly (though fees increased).

Its refinance index decreased 16.2 percent from the previous week and the purchase index fell 5.2 percent from one week earlier.

The four week moving average for the overall market index is down 3.1 percent.

Here’s a graph of the purchase index (courtesy: Calculated Risk):

: click to enlarge

And the average contract interest rate for 30-year fixed-rate mortgages decreased to 5.04 percent from 5.07 percent, with points increasing to 1.25 from 1.13 (including the origination fee) for 80 percent loan-to-value ratio loans that can be sold to Fannie Mae or Freddie Mac.

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anonymous says:

October 28, 2009 at 8:44 am

Rates are so low right now. Artificially low. Great for buyers, terrible for savers like me. Man what’s going to happen soon as the Treasury and/or Fed (is it both of them or one of them?) stop buying MBS’s in another few months? Safe to assume an instant .5%-1.0% increase in a traditional mortgage after that windown occurs?

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Tom M says:

October 28, 2009 at 10:05 am

The only thing this is doing for buyers is keeping the prices high. This is all the government does is watch out for the interests of the banks.

Republicans ARE Traitors says:

October 28, 2009 at 10:52 am

I’m sure one day someone will write a book about what Bernanke and Geithner did to the Country. Most every American has a savings account, checking account or some sort of CD account that is an interest bearing account. When Bernanke and Geithner chose to drive interest rates to zero, they declared war against nearly every family in this Country. They pretend that manipulated low interest rates are a good thing for everyone when in reality it only benefits the banks and those who want to be heavily in debt. By artificially driving interest rates to zero they take money away from the economy by depriving nearly every citizen of their interest from savings. They do this all for the benefit of their banker friends and their own families interest.

I support imprisoning Hank Paulson, Ben Bernanke, Alan Greenspan and Tim Geithner for crimes against the citizens of the United States of America.

diddly-squat for naught says:

October 28, 2009 at 10:56 am

And GMAC is begging for billions more in bailout money. Most likely they will get the money way before current homes in escrow will close.

Obama said we needed ‘Change’….didn’t realize it meant screw the consumer, help the big shots managing the big banks. I’m sure he agreed with them on not making loans available to small businesses. That would have helped save some of them from folding or laying workers off. Obama is out to distroy America.

Tom M says:

October 28, 2009 at 12:26 pm

It doesn’t matter who is in office, this country has changed from 20-30 years ago and it ain’t good.

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foolishpleasure says:

October 28, 2009 at 12:15 pm

obama? that guy is a clueless politicain just like all the
rest of the crooks in washington–
heres the real news of the day–

http://jan.freedomblogging.com/2009/10/28/65-fear-their-business-will-fail/24287/

65% of small business owners expect to go kaput
within the next two years– sixty five percent
and this with a zero fed funds rate
and all the bailouts of the governments banking cronies–

can you say depression?

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