This morning the Mortgage Bankers Association released its Weekly Mortgage Applications Survey. For the week ending May 16, the report showed that overall mortgage application activity fell 7.8 percent.
The number of people applying for a loan to purchase a home fell 6.9 percent week-over-week while the number of homeowners applying to refinance their mortgage declined 8.7 percent.
Quicken Loans Chief Economist Bob Walters says that consumers are ready to take advantage of favorable interest rates, but restrictive credit guidelines may be holding them back.
“Many of the pieces are in place to spur a resurgence of activity in the housing market: Interest rates have been less volatile recently, jumbo loans offer favorable interest rates, and the FHA loan program is making it possible for many more people to qualify for financing,” says Walters. “Overly restrictive credit and equity requirements, however, are still holding back a significant number of folks who could potentially flood the market with potential home buyers.”
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