Mortgage Activity Flat in Latest Report
Mortgage News from Quicken Loans
The number of Americans applying last week to refinance their existing mortgages increased slightly as compared to the previous week, but a minor drop off in applications to purchase a home negated those gains, leading to a relatively flat week for overall mortgage activity, according to the Mortgage Bankers Association (MBA).
Today's MBA Market Composite Index showed that for the week ending July 27, overall mortgage activity decreased 0.3 percent from the previous week's numbers. While the number of refinance applications increased 1.8 percent, consumers looking to purchase a home dipped 1.8 percent. However, since purchase applications represent approximately 60 percent of all applications submitted last week, the overall result was a slight decrease in the week-over-week number.
Quicken Loans Chief Economist, Bob Walters, notes that despite today's report, housing may be on the brink of stabilization, bolstered by better-than-expected employment numbers.
"The housing market continues to feel the affects of tighter lending standards, however it's not all doom and gloom. Low long-term rates continue to drive refinancing activity. With as much as $1.5 trillion in ARMs set to adjust higher this year, many consumers continue to find it beneficial to refinance into the security of fixed-rate programs," says Walters. "Because of the sheer number of loans readjusting this year, we can expect to see this trend continue."
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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