Mortgage Applications Continue to Decrease on a Weekly Basis

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Even fewer prospect home buyers applied for a mortgage loan during the week ended June 20th compared to the week ended June 13th. The decrease in the number of applications was smaller than the one experienced during the previous week. Still, it led to the volume of applications reaching its lowest point since April.

The mortgage applications during the week ended June 20th were 1% lower than the previous week ended June 13th. This weekly decrease is over 9 times smaller compared to the decrease experienced during the week ended June 13th which was 9.2%. Even though the decline has slowed down considerably, the volume of applications hit its lowest point in three months.

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The applications for mortgage refinance decreased by 1% as well during the week ended June 20th. At the same time, they managed to hold their share in the total number of applications. It remains 52%. The new mortgage applications for home purchase also dropped down by 1%. Their current level is 18% lower on an unadjusted basis than during the same week of 2013.

The mortgage applications decline despite the fact that the mortgage rates remain close to their historic low. At the same time, lenders are making attempts to make their products more flexible and their standards more relaxed. The majority of analysts agree that fear appears as the main factor keeping prospect buyers out of the housing market. They are afraid to apply for a home loan because they believe that they do not have sufficient down payment and acceptable credit score. It is expected that the forecasted increase in income defined by GDP growth will boost consumer confidence and more people will resort to using a home loan for purchasing a house.

Unless there is a major surge in the mortgage rates or another major disturbance in the market for home loans, the mortgage applications will most likely remain steady.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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