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Residential Finance Corp.’s Barry Habib on the decline in refinancing and mortgage applications.
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Arms sales they were up three point 6% as you know in July matching the two year high but.
Refinancing.
And mortgage applications dropped last week so what's really going on.
Rates so low very upbeat I said get a miniseries vice president and chief market strategist for residential -- finance corporation.
At dropped week over week is -- sit down about 9%.
For refinancing that's gotta be not because people don't want to because -- -- so low but because they're having trouble.
What's going toppled.
Well actually there's there's a lack there and in the previous week we had seen interest rates move up.
So when you see an interest rate move higher on the refinance side sometimes they'll slow things down.
But you are correct there are some more obstacles and trying to refinance -- tried to obtain a mortgage isn't necessarily underwriting side.
Predominately its property values people want to refinance they think they can save money and they go to get their praise from their appraisal.
Doesn't come up to sometimes what's needed on the on the 80% -- to -- -- to have 20% equity or sometimes as you know -- underwater that property is.
Worth less than the mortgages it's.
Gotta be huge and frustrating disappointment because people -- rates are three point 73 point 8% I had a fifteen year whatever firfer five point 7% -- could be saving money and in the banking system can do.
Does a couple of solutions that.
People can look to some alternatives there's FHA which shall certainly be a lot more forgiving -- they pay a little bit of a premium on the back and what you get -- you get -- -- ability feature.
That's pretty cool imagine seven years from now selling your home and saying -- -- rates -- six or seven or 8% who knows.
If you -- my home you'll get three and a half percent that's pretty cool.
Now on the other side some of the solutions are the ones we've heard about -- it's been very beneficial that's the government that's correct if you travel on the qualifies by harp you can really save a ton of money.
On -- refinance.
You called the housing bottom the last time you were on this program so time to buy time to sell which isn't.
I think that if you're a buyer and you patient look if you're gonna buy and -- -- six months from now gonna hit the jackpot I don't think that that's going to happen however if your buyer today.
And you're saying I think lemon live in this home for seven years ten years they -- do very well for two reasons is a lot of pent up demand.
You know that there's about six million people between the ages of 25 and 34 still living at home it's kind of scary you have the ability right now to.
Purchase a home and finances extremely low yields so I think that over time you'll do well rents are very expensive to -- you know.
All I can say is very has guided me every student for the way -- and in the right way so I'm listening to you thanks so much it's not very happy about vice president chief market strategist for residential find.
