Mortgage applications fell to an eight-year low last week as Americans delay or abandon purchases and fewer people seek to refinance their loans. I suppose most Americans think home prices will go even lower. The age old theory of buying low and selling high still holds true. What do you think Americans are afraid of? Or do you think it is possible that mainstream America is still buying and selling? Perhaps the indicators reflect a lack of investors, jumbo loans, and mortgage broker aggressiveness.
I understand the problems associated with refinancing. The share of applicants seeking refinancing also fell down to 34.8 per cent, the lowest since July 2006, from 35.2 per cent the prior week. No good deals, higher rates, and an overall drop in prices and appraisals must be the cause. I wonder, however, if the figures reflect the truth. Our son and his wife just refinanced last week.