Home Sales Continue to Stall
The Mortgage Bankers Association reports that refinancing and home mortgage applications both declined for the third straight week for the week ending September 17, an indication that home sales are stalling even more following the expiration of the federal homebuyer tax credit.
Even with interest rates at near-record lows, refinancing applications were down one percent for the third straight week, and home purchases fell 3.3 percent for the week. According to the MBA, the combined four-week moving average fell 2.3 percent. Currently, over 81 percent of mortgage application activity is for refinancing.
Credit continued high unemployment and weak economic conditions for keeping homeowners in their current home, and discouraging others from a purchase. Experts say that without more hiring, a housing market recovery is unlikely, since people need income to qualify for mortgages.
Florida’s unemployment rate rose to 11.7 percent in August from 11.5 percent one month earlier and 10.7 percent in August 2009. Florida currently has the fifth highest unemployment rate in the country, after Nevada (14.4 percent), Michigan (13.1 percent), California (12.4 percent) and Rhode Island (11.8 percent). Some areas of the state fare worse than others – Duval County unemployment was at 12.7 percent in August, up .02 percent from July and 1.2 percent from August 2009.
If you are a Florida homeowner who is interested in learning more about how to prevent foreclosure, contact our Jacksonville foreclosure defense law firm.
Greg Gilbert
Keith Maynard
