| Mortgage applications fall for 2nd straight week
WASHINGTON -- Mortgage applications in the U.S. fell for the second week in a row last week as fewer homeowners refinanced, an industry report showed Wednesday.
The Mortgage Bankers Association's index of applications to buy a home or refinance a loan slipped 0.2 percent last week to 671 from 672.1 the prior week. Home-purchase applications rose 0.1 percent, while the group's index of refinancing posted the first back-to-back decline this year.
Purchase applications, while up from a three-year low in October, are at about the same level as a year ago. The numbers point to limited demand and a drag on economic growth as prices decline amid a glut of unsold homes.
"There's a lot more downside to come for home prices, which in turn will trigger more weakness in the housing market," said Michael Gregory, a senior economist at BMO Capital Markets in Toronto.
Weigh options before refinancing
A few years ago, the housing market was booming. Now that it's slowed, homeowners and lenders are realizing they're in a pickle. Bankruptcy and foreclosures are happening left and right. Do you have an adjustable-rate mortgage you're looking to get out of? Wanting to tap into your equity to fix up the house?
To protect your home investment, now may or may not be the time to refinance. There are more options than when your parents bought their first home. What type of mortgage is best for your situation?
A home is a great investment. A mortgage can be the start of a great savings account. Before deciding on a mortgage, look at your options to see what best fits you, not only now but in the long run. Talk to several qualified lenders to help find the best fit.
Britain is not the US, so don't panic - yet
It's the time of year estate agents love. Easter, traditionally, is when the market comes alive after the winter lull; the sales particulars are ready for eager house hunters; the properties have been spring-cleaned and given a lick of paint. The degree of seasonality in the housing market is a bit of a myth, since buying and selling now goes on relentlessly from one month to the next, even though some months are busier than others. There's no doubt, though, that the market was given a timely pre-Easter lift by two pieces of news last Thursday: first, that the Halifax, Britain's biggest lender, said house price inflation broke through the double-digit barrier for the first time in a year last month, rising to above 11%; and second, that the Bank of England decided that there was no need to raise interest rates from their current level of 5.25%.
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