Mortgage Lending Plummets

May 7 (EIRNS)--Total mortgage originations in first quarter 2007 in the U.S. were $490 billion, down 14% from the 4th quarter of 2006, and about 20% from first quarter of 2006, the Federal Reserve reported today. Subprime mortgage originations have fallen about 30% from 2007, amd the Mortgage Bankers Association projects them at about $350 billion in 2007.

Within this large drop, the portion of all mortgages for purchase, (as against refinancing), rose to about 55-45%, compared to 50-50 last year. This means that, despite all the government and Federal Reserve appeals for refinancing of unpayable mortgages at fixed rates, refinancing has still fallen, because home-price appreciation has reversed.