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Mortgage Applications Plummet To 13-Year Low As Tax Cuts Expire

The Refinance Index increased 14.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 27.1 percent from one week earlier. This is the lowest Purchase Index observed in the survey since May of 1997. ... “Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “However, refinance borrowers did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks.

1 Comments in Response to

Comment by Ross Wolf
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The high costs of Obama forced health insurance on the middle class will disqualify many home buyers from getting mortgages. Qualified home buyers are needed to support housing values that now secure $Trillions in bank held mortgages.

What was the point of taxpayers bailing out the banks if Obama had intended all along undermining most homes values by forcing unaffordable health insurance costs on Americans that would both disqualify home buyers and make it impossible for millions of current homeowners to pay both their mortgage payment and forced annual health insurance premium. Dropping home selling prices are causing local governments to collect less property tax and layoff government employees. CA among other States have raised state income taxes to make up lost taxes.  Obama's economic polices will bankrupt both state governments and the Feds.

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