Mortgage loan application has fallen to a Nine year low last week. The reason being the consumer were waiting for the outcome to renewing the housing tax credit.
The Mortgage Bankers Association said applications dropped 12% as of November 6th to 220.9 applications. The lowest level since 2000.
The associations refinancing gauge is up 11% as interest rates fall.
The drop in applications show that government tax credit program which help stabilized the housing market. Without the program housing would weaken.
“Uncertainty over the housing tax credit sent some tremors through the market in recent weeks,” Michael Larson, a housing analyst at Weiss Research in Jupiter, Florida, said before the report. “But now that Congress has extended and expanded the credit, we should see demand pick back up.”
Interest rates fell to 4.9% down from 4.97% for 3o fixed rate loans.