US Loan Demands Reach Multi Year Lows

Near-record low mortgage rates  couldn’t prevent the sudden drop  in  mortgage demand that came in the wake of the expired federal tax credit program. Mortgage Bankers Association stated that  mortgage purchase applications sank 27.1 percent due mostly to the expiration of the  the popular government support program.

Applications  for home purchase loans have fallen almost 20 percent over the past month despite low borrowing costs.

On the,  upside mortgage refinancing applications increased by 14.5 percent as homeowners scramble to take advantage of  rates hovering neared historic lows. According to the MBA average 30-year mortgage rates fell 0.13 percentage point last week to 4.83 percent just shy of the the record low of 4.61 percent established in  March 2009.

Almost 70% of all of lat week’s loan  applications were refinancing applications.

Michael Fratantoni, the  Mortgage Bankers Association Vice President of Research stated that ” The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season .”