Applications for U.S. home mortgages, as reported by CNBC, fell to its second-lowest level of the year last week as interest rates rose, as the Mortgage Bankers Association (MBA) said in its seasonally adjusted index of mortgage application activity.

Name the category …. none of it is positive:

• The number of applications for mortgages fell 7.8 percent to 621.6 in the week ended May 16.

• The MBA’s seasonally adjusted index of refinancing applications declined 8.7 percent.

• The gauge of loan requests for home purchases dropped 6.9 percent to 352.5 in the period.

•  Applications for refinancings fell 8.7 percent to 2210.5 from 2422.1 the previous week.

•  Fixed 30-year mortgage rates averaged 5.9 percent in the week, 8 basis points higher from the prior week.

Relatively low interest rates have been among the few supports to housing, where soaring foreclosures have sparked unprecedented moves by lawmakers to stabilize the market.

Scary Home Equity Facts:

• Falling home prices have made an increasing number of U.S. homeowners more vulnerable to default. Shockingly, nearly a third (1/3) of sub-prime borrowers owed more than their home was worth at the end of last year.

• And it gets better. The number of homeowners who owe more than their homes are worth is predicted to double to 63 percent in 2009, according to Credit Suisse.

No Tags

Posted in Mortgages, Real Estate Brokers, Home Equity, Historical Perspective, Annual Recap, Market Trending | One Comment