Mortgage financing dropped to a five month low this Summer as homeowners looking to refinance waited for the August drop in mortgage interest rates. Figures from a recent survey this week show that under 180,000 mortgages were approved this July, down seven percent for June and the lowest since February.
Refinancing mortgage loans dropped 9 percent from last summer, while mortgage loans for new home purchases were down six percent.
The survey revealed the extent to which the homeowner’s appetite for home equity loans has gone up, with 25 per cent more home equity loans approved in July. Borrowing on credit cards and personal loans also dropped during the month, following the recent trend. Consumers have been borrowing less to spend in recent months. The rise in overall mortgage loans was the lowest since December 2001.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
