GOODNEWS Mortgage Applications rise

www.cnbc.com...

U.S. mortgage applications rose in the last week of January, reflecting a jump in demand for home refinancing loans even as interest rates rose to their highest levels since early December, data from an industry group showed Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications ,which includes both purchase and refinance loans, for the week ended Jan. 30 increased 8.6 percent to 795.4 after slumping 38.8 percent during the previous week.

Mortgage applications yes...

But how many resulted in actual closings?

It is all about the closings, for all we know is that a bunch of people think that this is a good market (LOL) and see this as an opportunity. But if they don't get approved, it doesn't mean anything.

Even if there is a rise in closings, they will most likely be distressed purchases or foreclosures which really isn't that great of news although it is something positive.

I don't know much about mortgage and the matter, can someone break it down for me and tell me why this is good?

Why would people want to put themselves into a lifetime of unpaid DEBT? Oh okay, fine: I guess it's all about 'Home sweet home'.

Originally posted by wutone
Mortgage applications yes...

But how many resulted in actual closings?

It is all about the closings, for all we know is that a bunch of people think that this is a good market (LOL) and see this as an opportunity. But if they don't get approved, it doesn't mean anything.

Even if there is a rise in closings, they will most likely be distressed purchases or foreclosures which really isn't that great of news although it is something positive.

That was my first thought too. Is anyone getting approved for these loans? Since the article said that many are for refinancing even though the intrest rates are up it seems to me that refinancing may be a last ditch effort for people to try to keep their homes if they are struggeling to make the payments. When you refinance you usualy have a month or two before you are required to make the first payment, this is one way to buy these people some time.....

reply to post by LeTan



LeTan,
It simply means more people are applying for mortgages and refinancing now than lets say a month ago. In my oppinion this may not mean that the economy is getting better, but to some it is hope. People may be trying to refinance if they are stuggeling. Some may be trying to cash out equity to put some money in their pockets because they are struggeling. If these were all new home loan applications and they were getting approved then that would be good news. With the unemployment numbers hitting 300,000 Friday and many more in fear of loosing thier jobs I do not see a mass spike in home sales in our future. Besides the banks were bailed out and they are not about to let go of any money any time soon.