Mortgage Applications Are Way Up, But Are Loans?

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According to MarketWatch, "With mortgage rates approaching record lows, the volume of applications filed for mortgages jumped a seasonally adjusted 48% last week compared with the previous week, according to the Mortgage Bankers Association’s weekly survey."

"Applications for the week ended Dec. 19 ran 124.6% ahead of the mortgage activity seen during the same week last year."

Most of the increase is due to a large drop in rates which are moving toward 5% for 30-year fixed loans. It remains to see whether most of these applications will be granted in a tight market where banks will resist lending money which carries any significant risk.

Douglas A. McIntyre