We are witnessing a drop in mortgage applications in US and this slump can be termed as the lowest level in three months. Demand for purchase loans and home loan refinancing, which is a provisional indicator of home sales have fallen down, giving an indication that the US housing market still remains susceptible to setbacks.
As per the Mortgage Bankers Association (MBA), the seasonal adjusted index of mortgage applications for week ending April 9, shot down to 9.6% which can be termed as the lowest levels since the week ending January 1.
As per the MBA, the fixed fifteen year mortgage loan rates averaged 4.45%, which is down from 4.54%. Even the rates on one year ARMs came to down to 7.02% from 7.03%.
The sector is still struggling and people are opting for debt consolidation to pay off their existing loans. Fingers are still being kept crossed and nobody knows when the economy will take a turn for the good.