| In a previous post we stated that we expected to see | | | | increase disposable income and consumer spending, or |
| an increase in Texas refinance loans in the as we got | | | | give borrowers the option to pay off other debts from |
| into the third quarter of the fiscal year. As it turns out, | | | | credit cards. |
| that increase in refinance applications might be here | | | | On the flip side, a falling number of purchase loan |
| sooner than we thought. | | | | applications certainly show a decline in home |
| The Mortgage Bankers Association (MBA) announced | | | | purchases, a negative for the housing market and the |
| last week that there has been a steady trend of | | | | economy as a whole. |
| increasing refinance applications. A spike of 9.2% from | | | | What we're still searching for is balance. Purchase |
| the previous week (June 21-25) is the most the | | | | loans rose gradually from February to April as first |
| Refinance Index survey has seen since the week of | | | | time home buyers scrambled at the chance at home |
| May 10--May 15, 2009, just over one year ago. | | | | ownership. Now as the deadline for purchase loan |
| Refinance applications do not necessarily translate into | | | | closings have been extended by Congress, purchases |
| closed deals, but obviously there is a positive | | | | are beginning to soften and refinance loans are |
| correlation. | | | | beginning to rise. |
| Additionally, the four week moving average for the | | | | The conclusion is that the housing market, and the |
| Refinance Index rose by 8.3 percent. The refinance | | | | economy as a whole, is still experiencing some |
| share of mortgage activity increased from 76.8% to | | | | unbalance. Many economists predict that we won't |
| 78.7% of total applications as well last week, which is | | | | see significant growth in the housing market until 2011. |
| the highest refinance share observed from the survey | | | | Until then, continue to watch mortgage rates and |
| since April 2009. | | | | consult a mortgage banking specialist. Consultations |
| The increase in refinance applications seems to | | | | with us are always free and our primary goal is to get |
| indicate that borrowers are looking for either reduced | | | | you the best information possible for your new home |
| monthly payments or lower interest rates. Both can | | | | purchase. |