- Posted April 24, 2014 by
Mortgage Applications Decline Ending April 18
The Mortgage Bankers Association reports that mortgage applications for new homes and refinancing fell by 3.3% in the week ending April 18. Loan requests for residential homes fell by 2.6% while refinancing fell by 3.7%. The average purchase price amount was reported at $280,500 which is a record. Analysts believe that there is a current trend of increasing activity for larger residential home loans.
Reasons for the market slow down include fewer distressed properties, fewer new home construction and higher mortgage rates. There currently are fewer distressed home sales and foreclosed properties being sold. Fewer foreclosures generally lead to fewer sales. In addition construction for new homes is currently slow. A decrease in inventory has caused prices to increase. Sales also dereased after mortgage rates increased decreasing purchasing power for potential buyers.