CONSUMER ALERT: Home Loan Demand Falls As Refinancing Slows - Spokane, North Idaho News & Weather KHQ.com

CONSUMER ALERT: Home Loan Demand Falls As Refinancing Slows

NEW YORK - Mortgage applications for home loan refinancing fell for a second straight week, dropping to its lowest level since early August, as rock-bottom interest rates failed to boost demand.

 

While historically low mortgage rates have been a glimmer of hope for a housing market that has struggled to find footing in the absence of government support, it failed to foster demand for loans to purchase a home last week.

The Mortgage Bankers Association on Wednesday said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended September 10 decreased 8.9 percent.storiesThe four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 0.8 percent.

The MBA's seasonally adjusted index of refinancing applications decreased 10.8 percent, reaching its lowest level since the week ended August 6.

Home loan refinancing puts extra cash into consumers' hands that they can save, use to pay off existing debt or funnel into the economy through extra spending.

Torsten Slok, senior economist at Deutsche Bank in New York, said "underwater" mortgages — where the amount owed on the mortgage exceeds the value of the home — are one of the biggest banes of the homeowners.

This negative equity makes many of them unqualified for home loan refinancing and prevents some from selling.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Hundreds gather to remember student killed in Freeman shooting

    Hundreds gather to remember student killed in Freeman shooting

    Saturday, September 23 2017 9:44 PM EDT2017-09-24 01:44:28 GMT

    SPOKANE, Wash. - On Saturday afternoon hundreds of people made their way to University High School to pay their respects and remember Sam Strahan, the 15-year-old student who was killed in a shooting at Freeman High School on September 13. The Spokane community came together to say their final goodbyes to Sam. 

    >>

    SPOKANE, Wash. - On Saturday afternoon hundreds of people made their way to University High School to pay their respects and remember Sam Strahan, the 15-year-old student who was killed in a shooting at Freeman High School on September 13. The Spokane community came together to say their final goodbyes to Sam. 

    >>
  • Colorado hikers rescue dog stuck on mountain for 6 weeks

    Colorado hikers rescue dog stuck on mountain for 6 weeks

    Saturday, September 23 2017 7:56 PM EDT2017-09-23 23:56:12 GMT

    PARK COUNTY, Colo. - Mountain climbers came together on social media to help rescue a dog stuck atop a 14,177-foot mountain in Colorado. A group dedicated to climbing so-called 14ers (mountains with elevations of at least 14,000 feet) worked together to find a dog stranded on Mt. Bross.

    >>

    PARK COUNTY, Colo. - Mountain climbers came together on social media to help rescue a dog stuck atop a 14,177-foot mountain in Colorado. A group dedicated to climbing so-called 14ers (mountains with elevations of at least 14,000 feet) worked together to find a dog stranded on Mt. Bross.

    >>
  • North Korea: Trump insult ensures attack on US

    North Korea: Trump insult ensures attack on US

    Saturday, September 23 2017 3:57 PM EDT2017-09-23 19:57:52 GMT

    UNITED NATIONS (AP) - North Korea's foreign minister says U.S. President Donald Trump's insult calling leader Kim Jong Un "rocket man" makes "our rocket's visit to the entire US mainland inevitable all the more."

    >>

    UNITED NATIONS (AP) - North Korea's foreign minister says U.S. President Donald Trump's insult calling leader Kim Jong Un "rocket man" makes "our rocket's visit to the entire US mainland inevitable all the more."

    >>
HD DOPPLER 6i
/