05 Dec 08 Mortgage Rates Drop and Loan Applications Increase
Bankers’ group cites Fed’s bailout of Fannie and Freddie for plummeting rates, with refinancing leading the way. Mortgage loan applications increased significantly last week, a mortgage bankers’ group said Wednesday, as government bailouts led to sinking interest rates that made mortgage refinancing especially more attractive. In the weekly report, the Market Composite Index – the association’s measure of mortgage loan application volume increased 112.1% on a seasonally adjusted basis from the week earlier. On an unadjusted basis, the index increased 51.4% from the previous week; it was down 21.9% from a year earlier, the report said.
According to Kelly Media Group president, Jason Cardiff, “Clearly lower mortgage rates are good for starving brokers and ultimately, low interest rates will help revive the economy. Cardiff continued, “The important thing to note is that the Fed and the mortgage lenders are making changes, something they have not been doing enough of.”
On an unadjusted basis, the index increased 51.4% from the previous week; it was down 21.9% from a year earlier, the report said. While the loan application statistics were high, “this is more a refinance story than a purchase story,” said Mike Larson, real estate and interest rate analyst at Weiss Research. FHA home loan applications increased and that was a great sign for mortgage brokers, because they have lost a lot of business to loan modifications in recent months. Read the complete article > Mortgage Loan Application Activity Surges.
Tags: FHA home loan, Kelly Media Group
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No offense, but what does Kelly Media have to do with mortgages?
Looking at their website it seems they are some sort of reseller of marketing media services.
Am I missing something here?
Jason Cardiff was the top loan managers at First Allegiance Financial for several years. Cardiff is a respected advisor for several mortgage companies for many years and many people on our staff embrace his financing opinions and commentary.