Mortgage Applications Nosedive in Late June

by devteam July 1st, 2009 | Share


Demand for mortgage loans simply plummeted in the final week of June, even as mortgage rates once again moderated, according to a weekly industry index.

The Mortgage Bankers Association said loan applications fell 18.9% in the week ending  June 26. The decline was led by a 30.0% drop in refinance-related loans. 

It seems that homeowners are less than enamored with mortgage rates, which were at multi-decade lows between March and April before soaring in late May. Average rates have since fallen in the last few weeks, yet they remain well above 5%.

In today’s MBA survey the average 30-year rate fell one-tenth of a percent in the week to 5.34%.

“The government needs to take more aggressive action to bring mortgage rates back down to below 5 percent as that seems to be a key level for the market,” said Kenneth Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley

The Purchase Index also decreased in the week, dropping 4.5% to its lowest level since November 2008.

Refinance-related loans accounted for just 46.4% of total applications, compared with 54% in the previous week. Adjustable-rate mortgages accounted for 4.3% of loans. 

Later today we’ll receive the Pending Home Sales Index, another gauge of consumer demand.


All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...