| PRESSÂ RELEASE
Cashout, FHA Share Expand in Weekly Mortgage Market Index DALLAS — (Aug. 6, 2012) The share of prospective mortgage borrowers who were extracting home equity through a refinance transaction was stronger in the latest week, as was the case for government-insured activity. Overall business remains elevated from a month ago. We saw a drop in the U.S. Mortgage Market Index from Mortech Inc. and Mortgage Daily this week, falling from 242 last week to 228. Cashout refinances saw a slight increase as did FHA loans, which could be an indicator that cash-strapped borrowers and those without savings for a conventional loan down payment have the confidence to re-enter the market. Some additional evidence for this may be found in this week’s employment numbers, which provided a nice surprise. Overall, though, the drop in the index was not enough to erode gains we saw earlier this year. Even down 6 percent week over week, the index is still higher now than it was in July. The index was at a high point for the year back in February, when it hit 267.“I’m not concerned with this slight week over week drop in the index,” said Mortech Inc. President Don Kracl. “I am, however, pleased to see increases in some parts of the business that have languished for some time.” Mr. Kracl added, “Interest in FHA loans ticked up this week, but it’s still down from its June level, where these requests accounted for 13.20 percent of all borrower requests for loan information through the system. Many have argued that FHA is taking on too much market share, so the slight drop in demand may actually be welcome.” |
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About Mortech, Inc. CONTACT: Source:Â MortgageDaily.com |
