As the housing market continues to struggle, there is further evidence today that things have yet to turn around as mortgage applications last week fell to lows not seen in nearly eight years. Today's data came from the Mortgage Bankers Association, which showed that its application index dropped down to 419.3 last week, its lowest level since all the way back to December 2000. Just since this past February the index is down by 61%.
For those of us who are anxiously awaiting any positive signs for the housing market, this week has proven to be anything but hopeful. Today's news comes on the heels of data yesterday that showed new home construction during July was at its lowest levels in over the past 17 years.
What is encouraging is that interest rates have been falling. The optimist in me wants to believe that lower interest rates, combined with lower home prices should start to bring buyers back into the market, but for now that is just not the case. How bad will things have to get before buyers start to jump back in and start gobbling up bargain priced homes remains to be seen.
So what are interest rates doing these days? Last week the national average on 30 year fixed home mortgages fell from a prior average of 6.57% down to 6.47%, while 15 year mortgages dropped from 6.17% down to 5.99%.
What are you seeing in your part of the country? Has the housing market seemed to be improving, stabilizing, or continuing to worsen where you live? Let us hear what is going on in your market.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
8-20-2008 @ 2:24PM
DANA said...
I STARTED MY MORTGAGE COMPANY IN 1992. I HAVE NEVER BEEN THROUGH TIMES LIKE THESE. IN RALEIGH NC WE ARE SUFFERING IN THE HOUSING MARKET.