Loan demand declines.

[badmomma]

This one is surprising to me. With all of the people out there who are in need of a refinance so that they can lower their payments they are saying that it isn't happening.

The MBA's loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans. In a falling mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out lower monthly payments. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (may boost consumer spending. Also allows debtors to pay down personal liabilities faster). A trend of declining purchase applications implies home buyer demand is shrinking.
Excerpts from the Release...
The Market Composite Index, a measure of mortgage loan application volume, decreased 6.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5.5 percent compared with the previous week.
The Refinance Index decreased 6.5 percent from the previous week. The four week moving average is down 2.7 percent. The refinance share of mortgage activity decreased to 64.9 percent of total applications from 65.7 percent the previous week.

Well I have to say that I think they are missing something. This report doesn't include the fact that banks just aren't loaning money. My bank as I have said before has 2 types of loans and that all. The rules are so steep that you can not get a loan. You have to have perfect credit,your payments have to have been on time for a minimum of two years.

Face it folks at the rate things are going the only people who are going to own a home from here on out are going to be rich or foriegn. Its a shame really but they let the banks go crazy and now we are going to pay for the mistakes that were made.

[realestatehound]

If you want to refinance please do yourself a favor and go to a mortgage company. My banker is a great guy and he has told me for years to take my buyers to a mortgage company. The biggest difference between banks and mortgage companies is that banks have set loans and the board of directors tell the loan officer's what must do to make loans. On the other hand mortgage companies will search for the best loans available from as many as 200 lenders. They will get you the best interest rate and terms out their.

[flippinout]

Thank you for that information Realestatehound. It has gotten so that you cant get loans at a bank and when you do, its pretty much set in stone as to what kind of loan and how much interest etc you will pay when dealing with a bank.

It would be so much better to go to a mortgage company where you would be assured that you will be getting the best possible results for the loan you want to buy a home.

Thanks so much for sharing this with us.