Sunday, April 17, 2011

Mortgage Applications Drop

Mortgage applications did in fact drop again, by 6.7% from the previous week. The refinance index also decreased by more than 7 %, shaking things up a bit and changing our market for a moment. Why does this happen? It could be any number of reasons really. It could be the increase in unemployment, or it could just be that the American people weren’t feeling so confident since the end of February. The challenge with the unemployment number is that it changes when people stop receiving their benefits.


The Change in the Purchase Index

The purchase index dropped nearly 5% just from week to week, but compared to last year it dropped more than 11%. This is no time for people to be afraid to buy, and I will encourage them to buy, especially right now. There isn’t a reason not to buy, and the market is prime for it. Prices are low, rates are still low, and people should jump at the chance before this all changes. Inflation is on the rise, and once it really gets moving, don’t expect it slow down. If you have income, a credit score of 640 or better, and some assets, let’s talk.

-Mayer Dallal

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