According to data from RM Insight, applications shot up in September 2009 and took a jump off a cliff in October (see chart below, click for larger version).
“The most concerning thing about this is the underwhelming ‘recovery’ from the expected slump in October,” said RM Insight. The four month period from Sep-Dec is 13.4% below the prior four months.
Based on recent trends, RM Insight estimates that possible application volumes for the year could end up as much as 20-30% lower than 2009 (avg 8,000-9,000 per month).
However, they do feel that factors like the HECM for purchase, new lenders as FHA removes correspondent approvals, could improve application volume. They ask a very difficult question at the end which I’ll extend to RMD readers, see below.