Prices of homes down, mortgage applications up

by Nina Gotzmannova

The crisis of U. S. housing market is not over. All the predictions and hopes were wrong and in September things went worse. National Association of Realtors revealed on Wednesday numbers of September and they showed a sharp decline. In August there was 5.48 million sold homes. In September the sale decreased 8 percent to 5.04 million. That is the lowest number since 1999. Also the national median price for a home dropped 5.7 percent from August. The average single-family home or condominium was in September $ 211,700. Last year in September it was 4.2 percent more. But the condominiums are selling better than single-family homes. Most probably people decide to live on their own without a family, or choose to live in a smaller place, because the sales of single-family homes dropped more that condos. In September only 4.38 million people purchased their new nest, in comparison with August, when the same decision made 4.79 million people. The loss is 8.6 percent. This situation may be caused by tightening of credit in August. There was also a danger of dispossession of U. S. subprime mortgages borrowed to people with fishy borrowing histories. People with financial troubles in past choose to wait for a better situation rather than purchase a home now, because they should be rejected. Never mind they can wait several years! On the other hand, the number of mortgage applications is growing. At the first glance positive sign is unfortunately negative. This rising number is only a result of difficulties the prospective borrowers have and therefore are forced to fill more applications at different companies to get one loan.

related story: http://uk.news.yahoo.com/rtrs/20071024/tbs-uk-usa-economy-4210405_1.html

by Nina Gotzmannova for PocketNews (http://pocketnews.tv)

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