Mortgage applications soar 48% - rates fall
Spike in refinancing following Fed moves leads to nearly 50% jump in Mortgage Bankers' index; home purchases also up.
Last Updated: December 24, 2008: 10:42 AM ET
NEW YORK (CNNMoney.com) -- Near record low mortgage rates sent mortgage applications shooting higher last week, especially for refinances, according to an industry report.
The Mortgage Bankers Association reported that its overall Market Composite Index, a measure of mortgage loan application volume, shot up 48% on a seasonally adjusted basis for the week ending Dec. 19.
That was driven by a 62.6% leap in the group's Refinance Index. But the Conventional Purchase Index also increased 17.7%. The only component of the overall index to fall was the Government Purchase Index, which largely tracks FHA loans. It slipped 3.4%
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The report comes a day after the National Association of Realtors reported the number of existing homes sold during November plummeted 8.6% as prices plunged by record amounts. New home sales were also lower, according to a government report. And housing starts and building permits now stand at record low levels.
I'm guessing that high levels of re-fi and low levels of new mortgages (low home sale turnover and low new home sales) is due to the banks trusting customers that already have mortgages but not first time buyers.
Fewer mortgages for first-time buyers
Dutch news
Published: Monday 22 December 2008 09:33 UTC
Last updated: Monday 22 December 2008 09:33 UTC
The national organisation of mortgage advisors says the financial crisis is pushing banks only to provide mortgages with the lowest possible risk. The organisation, Nationale Hypotheekpas (NHP), warns this will make it much harder for first-time home buyers without savings to get a mortgage.
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HSBC mortgage boast won't help first-time buyers
Telegraph UK
By Kara Gammell
Last Updated: 4:28PM GMT 08 Dec 2008
The UK's largest bank has said that it will lend up to £15bn in mortgages in 2009 – a 20pc increase on this year. But despite being one of Britain's main high street banks, it is not one of the biggest lenders, having just a 4pc market share.
Mortgage brokers welcomed the move but said it would not boost the first-time buyer market and it would help only borrowers looking to remortgage who have a decent chunk of equity in their home.
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California home loan program suspended
mercurynews.com
By Eve Mitchell, STAFF WRITER
Posted: 12/23/2008 04:06:31 PM PST
It has got even harder for low- and moderate-income first-time home buyers to find an affordable loan, thanks to the state's budget problems. The California Housing Finance Agency has temporarily suspended popular programs that help people get into homes through 30-year, fixed-rate loans and down payment help.
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Lower interest (for the moment) and fewer new mortgages--what is all this going to do to the banks?