Level of Mortgage Applications Remains Depressed
President Obama took time on Thursday to promote mortgage rates that have fallen to new lows. But, in a note from the president’s Council of Economic Advisers, the White House explains that, while the level of loans for home purchases has risen by 19% since the administration rolled out its homeownership plan in mid-February, the level of mortgage applications remains depressed relative to levels seen in 2002 when home sales began to accelerate as lending standards loosened.
Meanwhile, refinancing applications are up 88%. At a White House roundtable on Thursday, the president touted refinancing as stimulus for borrowers who can take advantage of low rates to lower their monthly payment. “That is money in their pocket,” Mr. Obama said.