Mortgage purchasing apps decline in wake of tax credit expiration

Borrowers took advantage of a decline in mortgage rates this week, sending refinancing application volume soaring to 14.8 percent above its level one week ago and to its highest level in six weeks, according to the latest data from the Mortgage Bankers Association. Meanwhile, purchase applications declined 8.9 percent week-over-week in the aftermath of the homebuyer tax credit expiration. “The recent plunge in rates on U.S. Treasury securities, due to a flight to quality as investors worldwide sought shelter from the Greek debt crisis, benefited U.S. mortgage borrowers,” said Michael Fratantoni, the group’s vice president of research and economics. Also, he added, “the tax credit likely pulled some sales into April that would otherwise have occurred in May or later.” TRD