The Home Loans Are Falling, The Home Loans Are Falling

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Home loan demand is in the dumper!

Every dittohead in bubble denial has an excuse for why you can't use this or that stat to support the argument that the housing market is winding its way into a tailspin, but I'd like to see any of them deny this one. If people aren't borrowing money to purchase houses then they are not buying houses. Period.

So stuff that in your overly optimistic, think-positive pie hole and chew awhile.

This from Reuters:

Mortgage applications fell for a third consecutive week, with demand for home purchase loans falling to its lowest level since November 2003 despite a drop in interest rates, an industry trade group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended April 21 fell 3.7% to 548.6, its lowest level this year.

The MBA's seasonally adjusted purchase mortgage index fell 4.4% to 389.4, its lowest level since Nov. 7, 2003 when it touched 375.4. The index stood at 482.0 a year ago.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.53%, down 0.03 percentage point from the previous week, which was its highest level since it hit 6.65% on June 7, 2002.

-- The Boy in the Big Housing Bubble/Los Angeles and Beyond