Mar 12, 2009
Mortgage Applications Rise – First Time Three Weeks
The Mortgage Bankers Association said that near record low interest rates has spurned the growth of mortgage applications for the first time in three weeks, including applications for home refinancing and purchase loans. This came as the government unveiled the most aggressive programs thus far to help homeowners since the housing market meltdown began.
The Homeowner Affordability and Stability Plan, unveiled last month by President Barack Obama is designed to give support to the depressed housing market.
Among the goals of this plan or to help distressed borrowers from the threat of foreclosure, support refinancing for quality borrowers and to encourage demand for new houses by expanding Fannie Mae and Freddie Mac. The resulting low interest rates are now at levels that could life demand in the days ahead.
30 year fixer rate mortgage borrowing costs are averaging 4.56 down about 0.18 percentage points from the previous week and the second lowest since the Mortgage Bankers Association began 18 years ago
The record low was 4.89 percent for the week ended Jan. 9, 2009.
Interest rates were well below year-ago levels of 6.37 percent.
The U.S. housing market is in the worst downturn since the Great Depression and its impact has rippled through the U.S. economy, as well as the rest of the world.
Economists contend the United States might not emerge from recession unless the housing market stabilizes.
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