By Diana Olick, CNBC Real Estate Reporter
NEW YORK ( CNBC) -- One weekly report does not a trend make, but today's mortgage application survey should serve up a good dose of reality to all of those state attorneys general and Obama administration officials touting a grand new refinance program for underwater borrowers. Interest rates on the 30-year fixed mortgage dropped to record lows a month ago, and while more borrowers went to refinance, the volumes were still very low. Then, more recently, we see basically a quarter point rise, and refinances fall off a cliff as the chart on this page shows. The goal of the refinance proposals (which I discussed in yesterday's blog) is to get the allegedly 3/4 of underwater borrowers with above-market mortgage rates (about 8.9 million according to CoreLogic) a break on their monthly payments. This would supposedly lessen the threat of default as well as add much-needed spending power back into the economy.
| More from CNBC Chinese Government Has Limited Tools as GDP Slows |
Greeks Work so Hard, so why the Debt Crisis?
Holiday Shoppers Plan to Buy More Gifts Themselves