According to the MBA (The Mortgage Bankers Association) mortgage loan applications have fallen again. Despite incredibly low interest rates (4.83% average for 30 year fixed) and despite the continuation of the housing tax credit, home buyers seem to have vanished. The seasonally adjusted Purchase Index has now declined for six consecutive weeks and is currently at the lowest level in more than a decade.
It appears that concerns that the tax credit would do little more than steal future purchasers may have been well-founded. And while we now have a revamped housing tax credit that includes existing home owners, there seems to be little excitement over the program.
Perhaps more buyers would be stimulated to purchase if they had jobs and if it truly appeared that the economy was in recovery.
Source: Mortgage Bankers Association
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