Industry NewsMortgage

Loan demand still reeling after tax credit expiration

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Demand for purchase mortgages dropped by more than 30 percent from April to June and has fallen in eight out of the last nine weeks, the Mortgage Bankers Association said today.Despite the fact that mortgage rates were at or near record lows, demand for purchase loans fell a seasonally adjusted 2 percent during the week ending July 2, and was down 34.7 percent from a year ago, the MBA said in releasing the results of its Weekly Mortgage Applications Survey.In order to claim the federal homebuyer tax credit, buyers had to be under contract by April 30, although Congress has extended the deadline for closing on those purchases to Sept. 30."For the month of June, purchase applications declined almost 15 percent relative to the prior month, and were down more than 30 percent compared to April, the last month in which buyers were eligible for the tax credit," said Michael Fratantoni, MBA's vice president of research and economics, in a press release.Applications for refinancings, ...