Home loans hit 14-year low as rates rise

The mortgage industry's output of new loans is at the lowest point in 14 years, according to estimates from a trade publication.

Inside Mortgage Finance said Thursday that even in the depths of the financial crisis, mortgage lenders were busier than during the first quarter of 2014.

One factor is the end of a refinance boom as interest rates have risen well off their record lows. But though the rates are still great by historical measures, mortgages written for home purchases have been weak as well, as sales of new and previously owned homes have slowed.

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About $235 billion in new home loans were made last quarter, Inside Mortgage Finance said, off 23% from the fourth quarter’s estimated $305 billion and 58% lower than in the first quarter of 2013.

It was the lowest output since the first quarter of 2000, when new originations totaled $215 billion. At the height of the financial crisis, in the fourth quarter of 2008, lenders still managed to originate $260 billion in home loans.

http://www.latimes.com/business/money/la-fi-mo-home-loan-slump-20140424,0,2825002.story#ixzz3018N3IaK

Good fuck em Phone Post 3.0

So basically home prices are still inflated and it's going to take a long time for wages to catch up to where people can afford to move again?

I know that's a bit simple but I have to believe that's part of the problem. Phone Post 3.0

clattymine - So basically home prices are still inflated and it's going to take a long time for wages to catch up to where people can afford to move again?

I know that's a bit simple but I have to believe that's part of the problem. Phone Post 3.0
Id say that and a combo of people have seen that there can be lower rates and arent quite as willing to just fork over more money because somebody decides hey lets rape people more by jacking up the rates Phone Post 3.0

Not sure what you mean by the rape people by jacking up rates?

Are you just basically trying to say that people aren't likely to get a mortgage because of their fear of getting "screwed"?

TampabayMMA - Rates were below 3% for a while, while prices were lowest too. Lately, prices have krept up and so have the rates, theyre around and above 5% these days.

Buying a house became significantly more costly in the last two years.
This is basically what i was referring to.

People will cave in but im guessing they are holding out for another dip in rates Phone Post 3.0