Dearth of jobs, consumer spending driving real estate market woes

The recession may be nearing its end, but the second quarter of 2009 will nonetheless be a nadir for jobs, consumer spending and industrial production, the Mortgage Bankers Association said. This is bad news for the commercial and multi-family real estate market, which is already feeling the impact. MBA’s Weekly Mortgage Applications Survey, released today, shows a seasonally-adjusted 2.8 percent decrease from a week ago in the Market Composite Index, which measures mortgage loan application volume. Refinances accounted for 65.3 percent of total applications, an increase from 63.8 percent the week before, while adjustable-rate mortgages decreased to 6.2 percent from 6.7 percent. The average contract interest rates decreased for 30-year fixed-rate mortgages, 15-year fixed-rate mortgages, and one-year ARMs, with 15-year fixed-rate mortgage interest rates hitting an all-time survey low of 4.34 percent. TRD