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Warm weather, stable rates provide no boost to mortgage apps

  • Refinance applications fell 4% last week, while applications for home purchases fell 3% and are now off 18% Y/Y. Refinance apps now make up about half of all mortgage volume, down from over 80% when rates were at record lows in 2012 and early 2013.
  • The average loan size continues to rise, this week reaching its highest level ever of $280,500. This coincides with a big rise in home prices, a surge in sales of more expensive homes, and the inability of first-time homebuyers to either get a mortgage or compete with the likes of Wall Street's all-cash buyers on the cheaper end of the market.
  • Previous: Mortgage apps fall 3.3% last week.
Comments (5)
  • june1234
    , contributor
    Comments (2995) | Send Message
     
    You mean it wasn't the weather. Go figure.
    23 Apr 2014, 08:08 AM Reply Like
  • Randal James
    , contributor
    Comments (3052) | Send Message
     
    Surely they can hire someone from one of the teen clothing chains or a middling restaurant group to explain that apps were down because of April Fool's Day falling wrong or a rise in heating expenditures because of the winter polar vortex.
    23 Apr 2014, 09:19 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4169) | Send Message
     
    Now that corporations realize that renting houses sucks and is more trouble than its worth, maybe the corporate money is drying up.
    23 Apr 2014, 10:06 AM Reply Like
  • minecanary
    , contributor
    Comments (562) | Send Message
     
    Do I hear a 'Home sales haven't reached zero. No recession' from the bulls?
    23 Apr 2014, 10:36 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (4169) | Send Message
     
    Housing expansion has been mostly corporate and investor based, not family based. So things should start reflecting reality soon, 5 years of improvement through artificial means has to end eventually.

     

    Funny how winding down of QE has a direct correlation to housing numbers isn't it? Maybe this is where the money has been going.
    23 Apr 2014, 10:41 AM Reply Like
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