Industry NewsMortgage

Demand for loans off 35% post-tax credit

Rates hovering near historic lows

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Demand for purchase loans is down 35 percent from a month ago as homebuyers have yet to return to the market following the expiration of the homebuyer tax credit at the end of April, the Mortgage Bankers Association said today.In announcing the results of its Weekly Mortgage Applications Survey for the week ending June 4, the MBA said a seasonally adjusted index measuring demand for purchase mortgages was down 5.7 percent from the week before and 30.4 percent from a year ago.Applications for refinancing were off 14.3 percent from the previous week. Requests for refinancing accounted for 72.2 percent of all loan applications, down from 73.8 percent the week before.Although rates were essentially unchanged from the week before and near historic lows, many homeowners have already refinanced, while others may not qualify because they remain underwater on their mortgages, have uncertain job situations, or have damaged credit, said Michael Fratantoni, MBA's vice president of research and eco...