Mortgage Activity Still Falling Short

Mortgage rates have stabilized and new mortgage applications were on the rise this week as consumers prepare for the holidays. But Countrywide Home Lending, one of the nation’s top mortgage lenders, reports that mortgage fundings fell in September and October. Fundings are the actual dollar amount that is brought in with regards to mortgage volume. Fundings fell by more than 10% from September to October, and application activity yielded $200 million less than the same time last year.

The amount of loans that Countrywide is projecting to fund in November is at $61 billion, compared to $71 billion at the same time last year. Year to date fundings have also fell by 7% from last year, indicating that the remainder of 2006 will probably not be a good one for the mortgage industry. The only reported increase was mortgage refinance applications, which rose to $24 billion in October, the highest in the last year. Though the report was for only one lender, Countrywide’s reported activity usually reflects that of the mortgage industry.\r\n