More mortgage applications doesn’t mean higher demand for housing
Uncategorized December 12th, 2007
Like this CNBC article explains, the numbers reported today that U.S. mortgage applications rose last week to the highest level since July 2005, don’t mean that the housing market is stabilizing. It actually mind mean that getting a mortgage is getting tougher out there.
The Mortgage Bankers Association’s index of mortgage applications rose by a seasonally adjusted 2.5 percent to 811.8 in the week ended Dec. 7, boosted by demand for both purchases and refinancing loans.
The trade group’s index continues to be skewed by borrowers filing numerous applications in the hopes of getting one approved, analysts contend.
Lenders are much more stringent in extending credit after being stung by loans that had been doled out when practices were much looser. Last week the MBA reported record foreclosures as well as a record pace of loans entering the foreclosure process in the third quarter.
