US Home-Buying Applications Sink to 13-Year Low (Obama Summer Recovery Continues!)

CNBC ^ | 07/14/2010 | Reuters

[Rational Thought]

Demand for loans to purchase U.S. homes sunk to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates, the Mortgage Bankers Association said on Wednesday.

Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the industry group said.

Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent.

Average 30-year mortgage rates edged up 0.01 percentage point to 4.69 percent, but were near the record low of 4.61 percent set in March 2009, based on MBA records dating back to 1990.

Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance. But high unemployment and foreclosures remain major hurdles, and worries that prices could dip further are also keeping many potential buyers on the sidelines.

[Rational Thought]

The Housing Market showing further weakness indicates further weakness in the over all economy.

[YankeeReb]

No Jobs ==> NO RECOVERY
Despite what Plugs tells us.

[central_va]

More Green Shoots™.

[gov_bean_ counter]

Stimulate me, baby...

[BobP]

We're in deep, deep economic trouble. And these liberals are going to friggin' sing and dance along, all the way, as they dance off a cliff.

WAKE UP AMERICA!

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[jiggyboy]

Hey half of a V-shaped recovery is better than none, right?

[Recon Dad]

Great time to buy a house! I got a great deal on a home in North Carolina. 14th fairway and a house I wouldn't have been able to buy if the market didn't stink.

[Oldeconomybuyer]

“Recovery Summer”. “Stimulus created or saved 3 million jobs”. “The check’s in the mail”.

[IllumiNaughtyByNature]

Three different people I know, this week got notification their mortgage adjustments/refi's were rejected. They were all using the same bank and all had started this process between 8 and 12 months ago. all rejected this week. they all pretty much said they were going to walk away from them and will not pay another dollar on the mortgage until they get evicted. Each instance has them or their spouse losing their job. so it's not a "don't want to pay" issue.

There is way too much coincidence that they all got notified within 48 hours of eachother.

[Le Chien Rouge]

The left is purposely crashing the economy.

See Cloward-Piven Strategy.

[sickoflibs]

RE :”Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance. But high unemployment and foreclosures remain major hurdles, and worries that prices could dip further are also keeping many potential buyers on the sidelines”

Yet Obama is out there bragging about his Obama economic boom:
Hoping to lift sagging confidence in President Barack Obama’s economic leadership, the White House will make the case on Wednesday that his policies are creating jobs and spurring private investment.

[Moonman62]

This is what happens when temporary government stimulus ends. Permanent recovery can only originate in the private sector (mainly with small and medium sized businesses) and that won’t happen until the government gets out of the way.

[raybbr]

We’ll refi when the rate hits 3%. Gotta keep those brokers eating.

[xzins]

13 year low EQUALS

BEFORE

George W. Bush

[Rational Thought]

New policy now that bank reserves have been increased via the American Taxpayer.

Looking at Housing for the past three years, if the Government and those geniuses (Frank, Cuomo and Dodd) had just left the market alone, Housing most likely would have bottomed by now. Further, Housing might never have experienced the severe decline to begin with.

[Rational Thought]

Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance.

That caught my eye as well as fewer and fewer borrowers are even eligible for financing.

[petro45acp]

Thanks to the community reinvestment act of 1976. The primary source for our current straights.

Silly to blame President Bush or 0 for the current situation. It was started with peanut brain and strengthened by slick willie. Reap what ye sow.

.02

[tcrlaf]

“HOPE!” has never fed a hungry child, and the Mortgage Company doesn’t take “CHANGE!” in payment.

[frogjerk]

Tried to refinance about two weeks ago when the 30-yr rate hit rock bottom. Bank tried to start playing games with costs and apr and stuff. I told them to stuff it.

[Jack Hydrazine]

Completely unexpected!