Tuesday, August 30, 2011
News from the housing market is still grim, as mortgage applications last week hit a 15-year low.
The mortgage application rate dropped 5.7%, down to the lowest level since December 1996.
Also, re-sales of homes in 2011 may be the worst in 14 years, and new home sales are on pace to finish the year as the lowest on record since 1963.
All of this despite the lowest mortgage rates in decades. The average rate on 30-year fixed mortgages has been below 5% for all but two weeks in 2011, and last week, it hit a four-decade low of 4.15%.
-Noel Brinkerhoff
Mortgage Applications Plummet to 15-Year Low (by Derek Kravitz, Associated Press)
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