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Mortgage applications fall despite lower rates; Kingsport, Johnson City, Bristol foreclosures increasing; homebuyer tax credits may get new life

Staff Report • Jun 11, 2010 at 4:40 AM

According to a USA Today report, the average rate on 30-year, fixed mortgages is near a record low again, but that may not be enough to bring lots of buyers into the market.

Mortgage finance giant Freddie Mac says the average for a 30-year mortgage is 4.72%, down from 4.79% a week ago and just a shade above the record low of 4.71% reached early last December.

Despite low rates, the Mortgage Bankers Association reported this week that the volume of new mortgage applications for buying homes fell to a 13-year low. Refinance applications dropped this past week for the first time in a month. Factors behind the drop-off in activity include the fact that many homeowners have already refinanced, limiting the pool of potential applicants.

Meanwhile on another housing market front foreclosure filings in Kingsport, Johnson City, Bristol foreclosure filings spiked to 2010 highs in May. CLICK HERE for that report.

And, according to CNN Money First-time homebuyers looking to land an $8,000 federal income tax credit may have a little more time to close on their purchases if a Senate amendment unveiled Thursday makes it into law.

Read the full report on mortgage rates at the USA Today Web site.

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