Posted by Julie/MI on 7/14/10 10:34am
Msg #344892

Mortgage applications down to 13 year low :(

Mortgage applications to buy home fall to 13-year low

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EmailPrint..Hibah Yousuf, staff reporter, On Wednesday July 14, 2010, 8:26 am EDT
Mortgage applications to buy a home plunged last week - to the lowest level in more than 13 years - as the housing recovery continued to struggle following the expiration of the homebuyer tax credit, an industry group said Wednesday.

The Mortgage Bankers Association said application for mortgages to purchase a home sank a seasonally adjusted 3.1% for the week ended July 9 on a week-over-week basis, driving the volume to its lowest level since December 1996. On an annual basis, 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%. The week's adjustments include the Independence Day holiday.

The slump in activity also came as rates on the widely used 30-year fixed mortgage ticked up to 4.69% from 4.68%, according to the MBA. The rate for a 15-year fixed-rate mortgage also rose to 4.12% from 4.11%.

Rates for one-year adjustable rate mortgages, or ARMs, held steady at 7.20%.

Reply by Bob_Chicago on 7/14/10 10:49am
Msg #344897

But the good news is that refi apps are climbing due

to the low rates.
Most NSA biz is refis, as most purchases are closed in-house at TCs.
The majority or my recent signings are refis, to lower rate, with limited of no cash out.
BTW , is this a typo?
"Rates for one-year adjustable rate mortgages, or ARMs, held steady at 7.20%."
ARMs that I have seen lately are in the low 4%s or even high 3%s

Reply by Yoli/CA on 7/14/10 11:03am
Msg #344901

Re: But the good news is that refi apps are climbing due

1-year ARM'S: Just did one last night at 3.675% for Provident.

Reply by MSFlorida on 7/14/10 10:58am
Msg #344900

Good I hope the banks get stuck with all the houses they stold from their borrower's. Maybe this will make them realize they better start working with their borrower's instead of giving them the boot.

Reply by James Dawson on 7/14/10 12:06pm
Msg #344916

I was made aware there are over 5 million foreclosed homes in inventory and just over 11 million homeowners that are at least 30 days behind in their mortgages. Something has gotta give. IMO

Reply by Georgia Attorney Closings on 7/14/10 12:33pm
Msg #344921

Not necessarily true about purchases in office. 95% of our business now is purchases, and all out of office. However, now there is anticipated a huge slowdown in foreclosure purchases, because I hear HUD plans to cut realtor commissions by 50%. Guess what! Realtors will not list them or market them. The contract prices being so low, computed at a 2.5% commission rate will reduce their interests dramatically. Sounds like another bust to our economy if these properties don't move.

Reply by Les_CO on 7/14/10 12:48pm
Msg #344927

Another example of Bureaucratic judgment. Just think of the money (taxes) we’d save if ALL Government employees (Including BMO) were put on a commission!

Reply by James Dawson on 7/14/10 1:58pm
Msg #344937

Ok now you have made me aware of what someone else made me aware of may not be true. We'll see. IGTOFTS

Reply by James Dawson on 7/14/10 2:01pm
Msg #344939

Not for you Les! n/m

Reply by Les_CO on 7/14/10 3:31pm
Msg #344950

Re: Not for you Les!

Okay James…..Thanks! No misunderstanding. I thought that your question to my post would give me a chance to clarify, and say perhaps my response belonged in “just politics” rather than here?
Please understand this “commission” I spoke of would depend on the actual job.
For instance someone working at the DMV would be paid on how many applications, they processed, (like 10 would pay more than 2) the same for say someone working at the CA SOS processing Notary Commissions (applications and renewals) On the other hand our legislators/lawmakers would be paid a commission on the amount they CUT from the budget. The amount they didn’t spend. If we paid them on the amount they SPENT (I think we do now, it’s called lobbying?) then our esteemed Leader, Congress and Representatives would be the most compensated, wealthiest ever.
Actually when I think about it…I think they are? If not the wealthiest individually, at least the most compensated….ever!

Reply by NCLisa on 7/14/10 2:09pm
Msg #344942

There are lots of realtors that will take this on even with lower commissions. There are so many realtors out there that haven't sold anything in a year or two that are desperate, that they will list these. Other than the MLS and a few ads on Craigslist, the marketing isn't that hard. Savvy buyers will push their realtors to show them foreclosure properties whether their realtor wants to show them or not, or they'll look at them without a realtor. I'm sure that some areas will try to take on a buyer paid commission too to counter things. The real estate market is going to have some major changes happening all the way around, from how commissions are split, to who pays what, etc in the years to come.

Reply by Les_CO on 7/14/10 3:20pm
Msg #344948

Let’s just hope what has happened to the Notary Signing Agent business does NOT happen to the Realtors. I personally don’t think it will. Yes many Realtors are starving out there, these are lean times. However I still believe “you get what you pay for.” Having just recently purchased a home, I went through a real estate sales lady that knew the area, prices, neighbors, what I was looking for, handy-men, landscapers, etc. and worked diligently in my behalf, and did one hell of a good job. She got paid a FULL commission. She was WORTH it. Now just to clarify I’m a licensed Colorado Employing Real Estate Broker, and have been for years. Perhaps I could have weaseled a “commission split” out of her, but I didn’t ask. I’ve made my living in the real estate/title/lending/notary business for years, she did her job, and she was a consummate professional that earned every cent of her commission. May I say that I believe there are many more like her/us out there? We KNOW, we DO, and we deserve to get paid for our worth.

Reply by James Dawson on 7/14/10 3:51pm
Msg #344952

I hear ya. Some RO agents are jewels indeed. I get referrals from an agent for all sorts of notary work because of the way I eased the tension between her and a obnoxious client. She constantly shows her appreciation by giving out my number. I got one today.

Reply by Les_CO on 7/15/10 8:48am
Msg #345006

Sometimes good things happen to good people.