Mortgage Applications Drop in the United States

Mortgage Applications Drop in the United States
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Mortgage applications experienced a fairly significant decline this past week, dropping nearly fifteen percent from the previous weeks. While the decline can be partially attributed to seasonal tendencies in the market, it certainly is not a good sign for the United States residential property market.

Mortgage rates did increase in the past week, which may be part of the reason for the decline. However, the mortgage rates for both fifteen-year fixed-loans and thirty-year fixed-loans are both still at near record lows. With that said, such a sharp decline in new applications leads many analysts to believe that there is much to be concerned about with respect to the housing market in the United States.

Prices continue to drop on homes, and while some areas are experiencing booms in the housing industry, the majority is struggling to even minimize an overall decline in sales and prices. The United States government is hoping that the incredibly low rates will eventually lead to increased performance over time. However, many residential real estate analysts believe that more needs to be done to get the country out of the lingering housing crisis.

In general, the northeast and southern Atlantic regions faced the biggest declines in applications over the past month. As such, many homes listed for sale in the region will likely remain unsold for the time being.

Many residential real estate experts are not hopeful that the low mortgage rates will create long-term success in the housing market. The market is still very much influenced by the job market, as well as the overall financial situation of the country, and the world. With that said, much more needs to happen for the market to improve, and mortgage applications may thus continue to drop in the coming months.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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