Interest Rates Low, But Holidays Trim Mortgage Activity
Mortgage News from Quicken Loans
This morning the Mortgage Bankers Association (MBA) announced that the number of consumers applying for a mortgage dropped 2.5 percent last week, as compared to the previous week.
The Purchase Index dropped 4.2 percent while refinance activity remained relatively strong, as evidenced by a slight 0.3 percent dip in the Refinance Index from the week prior.
The MBA stated in its report that a decrease in applications last week can be attributed to the observance of the Easter holiday, as fewer people were shopping for homes. Nevertheless, Quicken Loans Chief Economist Bob Walters says the current economic environment remains supportive of housing.
"The drop in purchase and refinance activity comes as a surprise given that pro-housing components such as a solid employment environment and low long-term interest rates currently are in place. If long-term rates continue to remain near the six percent level, we can expect to see strengthening in both purchase and refinance activity throughout the spring and summer."
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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