February 19, 2014
Purchase Loan Activity At Lowest Level Since September 2011
The Mortgage Bankers Association's Purchase Index, a measure of mortgage loan application volume for home purchases in the U.S., has fallen to its lowest level since September of 2011 on a seasonally adjusted basis. On a non-adjusted basis, the Purchase Index is down 17 percent year-over-year, as it was at the beginning of February.
As we noted two weeks ago, while a lack of inventory is certain to be blamed for holding back applications, according to the National Association of Realtors' own data, inventory levels are up on a year-over-year basis, with 1.86 million existing homes on the market at the end of December versus 1.82 million homes on the market at the end of 2012.
First Published: February 19, 2014 3:15 PM
Comments from "Plugged In" Readers
The banks are finally unloading their pent-up shadow foreclosure inventory because the institutional speculators are heading for the exit.
Posted by: two beers at February 19, 2014 4:26 PM
Hey, lower interest rates and/or devise loans so people with lots of equity can borrow w/o that limiting 43% DTI (which doesn't work well for self employed, heavily asset boasted, etc.) and then you'll get more loan business. Simple!
Posted by: poor.ass.millionaire at February 19, 2014 5:53 PM