Categorized | Residential

Property Demand Still Not Increase

Property Demand Still Not Increase
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It was surveyed and calculated by the Bankers Association of Mortgage that the price ratio which was observed in 11th June 2011 has been decreased to 4.54 percent which is considering as the worst lowest rates when compared with the housing rates of November 2010. It has also been observed that even the housing prices have been decreased so much that a normal salaried person can also easily purchase or rent a house, not a big ratio of application for lending or purchasing homes has received. Although the interest rates have gone to low and the supply of credit is available to everyone people are not taking much interest in purchasing or lending housing properties.

According to “MBA (Mortgage Bankers Association” the application that were received in the first week of June are showing the decrease in the demand by 4.4 percent which is three times less than the numbers of applications received in the first week of May. And when you move a few years back, the year to year calculation is showing even worst situation and the decrease in the price of mortgage has gone down by 15 percent as compared to the prices of last year.

Refinancing is not a complete solution as said by the association because the figure is already low since the year 2010. May be the reason could be the lack of the supply of credit or lack in the demand of credit. Whatever the reason is, the problem is still not resolved and mortgage lenders and borrowers are still trying hard to overcome the serious situation.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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