Mortgage Apps at 5 Year High
May 1st, 2009
Categories:Real Estate News
Mortgage applications hit a 5 year high, reports MSNBC.com. After the Federal Reserve announced they would buy $500 Billion in mortgage backed securities, the rates continue to drop as lenders anxiously take advantage of the situation.
Freddie Mac reports the average 30 year rate on December 31st as 5.10%. 80% of the applications are for refinances as those with equity in their homes take advantage of the historically low rates. Unfortunately home owners who can not refinance because they are under-water or upside-down continue to see their situation get worse as others in their position continue to walk away from their homes.
Sadly, those who continue to walk away from their homes only make the problem worse as their homes become bank-owned properties which inevitable drive down the home values for their neighbors.
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