Applications to Finance Homes Continue to Fall Despite Low Rates

By Russ Boyd on July 22nd, 2010

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Mortgage applications to buy homes have plunged in recent weeks to the lowest level in more than 13 years.  I’m Russ Boyd and this decline comes as the housing recovery continues to struggle following the expiration of the homebuyer tax credit.

The Mortgage Bankers Association said application for mortgages to purchase a home sank last week driving the volume to its lowest level since December 1996. Year over year, applications for the week were down 43%.

Much of the slowdown has come since the April 30 expiration of homebuyer tax credit. Homebuyers had until that deadline to sign contracts. Congress extended the deadline to close deals to Sept. 30.

The government’s latest reading on new home sales plummeted to a record low in May, thanks largely to the expiration of the tax credit.

The MBA’s reading on refinancing applications and its overall mortgage application index also declined, each sliding a seasonally-adjusted 2.9%. Mortgage rates are holding near lifetime lows, however, the housing markets remain fragile.  In the Bay Area inventory continues to be low with bidding common on well priced homes.

With the complexity in today’s real estate market you will benefit from the advice and guidance of an experienced and knowledgeable real estate professional. I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response.

If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, including bank owned and short sales, home loan information, market activity reports, home seller strategies, staging and decorating, a suite of 19 calculators, plus my book, “Let’s Make a Deal, The Insiders Guide to Buying and Selling Real Estate” and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed as a Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage License Registry 230411.