From Marketwatch.com:
The mortgage applications were down 24.5% from last week.
Overall, application volume for the week ended Feb. 6 contracted by an unadjusted 43.9% from the same week in 2008, the MBA said.
That's half the mortages from last year. The fed and everyone else in the government seems to be concerned about mortgage rates. But until the debt-to-income ratio improves, lower rates are not going to help much. It does not matter what the rate is, if you lose a job, you won't be able to afford a mortgage.
So the government focusing on mortgage rates and bank lending seems misguided. But everyone these days seem to be throwing money at something to see if it sticks. I disagree with Obama that a not-so-great stimulus plan is better than none at all. We are spending $1 trillion dolloar! We better make sure it's not a wasted like TARP 1.
Meanwhile, applications for home-purchase mortgages also dropped, down a seasonally adjusted 9.8% -- pushing the MBA's purchase index to its lowest level since the end of 2000
The MBA purchase index shows that there is more refinancing activity than purchasing.
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