Mortgage Applications See Decline
Mortgage News from Quicken Loans
The Mortgage Bankers Association announced this morning that applications for mortgage loans slipped 4 percent last week when compared to the week prior.
The report showed the Purchase Index dipped 4 percent while the Refinance Index fell 4.2 percent from the previous week.
Quicken Loans Chief Economist Bob Walters says that applications have been negatively impacted by the recent tightening of credit.
"Without a doubt, mortgage applications are feeling the sting of tightening credit," Walters said. "What is important to remember is that the vast majority of folks that are able to document their income and assets are still able to get financing, at very attractive rates. On top of that, as we continue to see record levels of unsold homes, no time has been better to be a buyer."
In the current buyer's market, sellers are very motivated to move their homes and are offering seller-paid incentives at unprecedented levels, for example, contributing toward closing costs and helping buy down rates on the buyer's loan.
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
Find the most up to date real estate news!
Find more mortgage related news! View all our mortgage news.
