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U.S. Mortgage Applications Fall 14%

Posted on October 22nd, 2009 8:00am by Candy Evans
Filed under Changing market trends in Real Estate, Real Estate

This is not good news, as we are nearing the end of the first-time homebuyer credit November 30. Actually, we might as well say that credit is over NOW, since few who buy a property in the next week or so will be able to close by November 30, what with all the lending and appraisal hoops to jump. So it is NOT good news for the housing industry nationally that mortgage apps are down. Apparently even Christopher Dodd is now calling for an extension…

2 Comments to “U.S. Mortgage Applications Fall 14%”

ClassicUrbanHomes @ October 22nd, 2009 at 9:32 am

Is anyone really surprised by this news? The credit was an artificial floor on a part of the housing market that had everything to do with political forces not economic forces. Doing something is better than doing nothing, right? Not. All you had to do was go back a month or two and look at auto sales post “Cash for Clunkers” to be able to see this coming.

While the government interferes with normal economic forces, there is no clarity for most homebuyers. No one really knows where the floor is right now. This interference, coupled with all the other roadblocks (appraisers, financing, etc.), make most people just sit back and wait until it all shakes out.
Candy Evans @ October 22nd, 2009 at 10:02 am

Right on! And where is the credit from the banks from all the stimulus money?