Large Inventory Of Homes Fuel Purchases
Mortgage News from Quicken Loans
The Mortgage Bankers Association announced this morning that applications for mortgage loans dropped 0.4 percent last week compared to the previous week.
The Purchase Index increased 2.7 percent while the Refinance Index decreased 4 percent from the previous week.
Bob Walters, chief economist of Quicken Loans, the nation's largest online lender, says he expects consumers to continue to take advantage of the opportunity they have in real estate as we enter prime home buying season.
"Homeowners are taking advantage of the favorable long-term interest rates, as well as an influx of homes for sale on the market, which has led to increased purchase activity," said Bob Walters, chief economist for Quicken Loans. "With more than $1.1 trillion in adjustable rate mortgages (ARMs) expected to adjust in 2007, and rates still low, it’s somewhat surprising to see a lag in refinancing activity. Nonetheless, we expect the strong pace of homeowners refinancing out of ARMs into fixed rate programs to continue throughout the year."
Quicken Loans is the nation's largest online retail lender, closing nearly $18 billion in home loans in 2006.
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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