Mortgage Rates Up; Mortgage Applications Down
I actually would think that since we’re nearing the deadline of the First-time Homebuyers Tax Credit of $8,000 that we’d be seeing a sharp rise in mortgage applications. Perhaps that’ll happen over the next few weeks as we get closer.
But instead, with the mortgage rates rising I’m thinking this might be causing people to think a little longer about whether they should buy a home now, or not buy one at all.
There’s also lots of news of the number of foreclosures rising and that’ll create not only more choices, but lower prices on homes.
Here is an article I read recently that talks a little more about the topic of rates and mortgage apps… http://bit.ly/6QLI6
What are your thoughts about the tax credit? Do you think it should be extended?
Make it a great day!
The housing sales now are being encouraged by the First Time Homebuyer Credit. If it expires we will see a drop in sales – and lower prices for homes. Thanks for the good blog.
Steve http://www.LodiHomes.com
More foreclosures coming? How is that predicted?
Well Ron, no one has a crystal ball but mine is clear plastic.
Loans are coming due and more of them are not being paid. Here is a good article explaining what’s to come in the months ahead… http://bit.ly/4zcue
Also, the fact that hundreds of MILLIONS of dollars were scammed from bogus first-time buyer tax credit requests means that the gov’t may not want to help out as much as many would like to see happen.