The Mortgage Bankers’ Association in America report that new mortgage applications have dropped over 6% compared last week and when compared to the same week last year, new mortgage applications are down 17%.
Interestingly homebuyer demand is still strong, but the number of purchases has fallen due to the size of average purchase loan application. “We’re seeing indications that entry level buyers continue to come into the market as jumbo borrowers looking at bigger homes step back,” said Mike Fratantoni, chief economist for the MBA. “Last week, the average loan size for home purchase dropped to its lowest level since January.”
Consumer apathy may have set into the refinancing sector too as applications are down 35% on a year ago, despite plenty of consumers who could benefit from mortgage refinancing.
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