NEW YORK (Reuters) - U.S. mortgage applications slid last week even as mortgage rates edged lower, with requests for loans to buy homes declining for the first time since early July, an industry group said on Wednesday.
When mortgage rates fell below 5 percent last month, broker Jeff Perdue's phone lines lighted up as dozens of people tried to join the latest refinance boom. When the ringing stopped, only five were approved.
Last summer, after several months of negotiations and debate, Congress passed a housing bill aimed at easing the mortgage foreclosure crisis. One part of the sweeping bill was designed to help homeowners who were having trouble with their high-rate mortgages refinance with lower-cost, government-backed loans.
As the federal stimulus bill takes shape, Republican lawmakers are pushing for the government to drive down rates for home loans to historic lows.
With the recent drop in interest rates, refinancing home mortgages has become a booming business again. Some lenders used to use a rule of thumb that it is beneficial to refinance your home when there is a difference of at least two percentage points between the old mortgage and the new one.
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