Mortgage applications
John Raoux/AP
By Caroline Valetkevitch

NEW YORK -- Applications for U.S. home mortgages declined last week as both refinancing and purchase applications decreased, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 3.1 percent in the week ended May 30.

The MBA's seasonally adjusted index of refinancing applications fell 2.9 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, dropped 3.6 percent.

Fixed 30-year mortgage rates averaged 4.26 percent in the week, down 5 basis points from 4.31 percent the week before.

The survey covers more than 75 percent of U.S. retail residential mortgage applications, according to MBA.


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jameshanhan

Just rent! When all cash flows are considered, renting costs less, which means you'll have more money to save & invest. Over the long run, the stock market averages +10%/yr.
So the 20% downpayment, 3-5% closing costs, 5-6% selling costs every time you move (average US home borrower moves every 7 years), property taxes, maintenance, insurance, is all money that could have been invested.
If you look at everything (all cash flows considered), you spend less money when you rent! Between property tax, insurance, maintenance, mowing the lawn, fixing the roof, etc. etc. plus the extra utility costs you're spending a lot of money that could be invested instead. What's wrong with renting??
Learn from the past people! (Of course they look at me like I'm crazy when I suggest they cut a $100+ a month cable bill. Or drive a car that is 3 years old. Or only fill up their tank from the cheapest place according to GasBuddy. Or get $25/month budget car insurance from Insurance Panda. Or cook their own food instead of spending a hundred a week on restaurant food (or far more if they like the bar).)
Nobel Prize winning economist Robert Shiller was one of the few people who accurately called both the stock market crash of 2000, AND the real estate crash of the late 2000s. He says that owning a home is a terrible investment!

June 04 2014 at 5:09 PM Report abuse rate up rate down Reply
dopey.obamite

Oh snap

June 04 2014 at 4:11 PM Report abuse -1 rate up rate down Reply
jdykbpl45

The Obama economy is so tapped out.

June 04 2014 at 10:09 AM Report abuse +3 rate up rate down Reply