- May 25, 2002
- Professional Status
- Certified Residential Appraiser
The desire to refinance at a lower rate leads to a surge in demand, but that doesn't mean the loans are being granted
More people are applying for home loans, but that doesn't mean they are getting them.
In a rare piece of good news for the mortgage industry, applications for home loans rose last week to a nearly four-year high after a sharp drop in interest rates on 30-year fixed-rate loans
Much of the surge in applications since the start of the year has been from homeowners looking to refinance at lower rates.
The real estate and mortgage industries hope that lower interest rates also will bring more buyers into the market, jump-starting the volume of home sales -- as well as mortgages on home purchases.
"Steep price declines in many areas coupled with historically low interest rates may be inducing buyers to get off the sidelines," said Lawrence Yun, chief economist with the National Assn. of Realtors.
Survey shows 3 of 4 homeowners believe their home has gained or retained its value, despite evidence of price decline
Despite numerous reports showing home values in historic decline, more than three out of four homeowners believe their own home has not lost value in the past year, according to an online survey.
The survey was conducted by Harris Interactive for Zillow.com, a Web site that gives estimated home values.
The survey of 1,619 homeowners found 36% believe their home has increased in value, and another 41% believe their value has stayed the same. Only 23% believe their home has lost value.
"This survey reveals that despite the data to the contrary, people either aren't paying attention to their housing market or are in denial about their own home's value," said Stan Humphries, Zillow.com vice president of data & analytics.