San Diego Union-Tribune

Winter weather hinders mortgage activity

- By Mehran Aram, Real Estate and Mortgage Analyst

Mortgage applicatio­ns fell to their lowest point in two months after severe winter weather across many parts of the country kept buyers sidelined. Total mortgage activity fell 11.4 percent during the week ending Feb. 19. This informatio­n is according to data from the Mortgage Bankers Associatio­n.

Historic storms in Texas played a large role in the sharp decline in mortgage applicatio­ns.

“[The storm] affected many households and lenders, causing more than a 40 percent drop in both purchase and refinance applicatio­ns in the state last week,” said Joel Kan, vice president of economic and industry forecastin­g for the Mortgage Bankers Associatio­n. He noted, however, that “the housing market in most of the country remains strong with activity last week 7 percent higher than a year ago.”

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.375 percent.

China’s commerce minister appealed to Washington for “joint efforts” to revive trade but gave no indication Wednesday when tariff war talks might resume or whether Beijing might offer concession­s.

“Cooperatio­n is the only correct choice,” Wang Wentao said at a news conference.

President Joe Biden has yet to announce a strategy for dealing with Beijing but is widely expected to renew pressure on trade and technology complaints that prompted his predecesso­r, Donald Trump, to raise taxes on Chinese imports.

Wang said he looked forward to “joint efforts” to “push bilateral economic and trade relations back to the track of cooperatio­n.” He noted President Xi Jinping talked with Biden by phone on

Feb. 11 but gave no indication when negotiatio­ns might resume.

Washington and Beijing have raised tariffs on billions of dollars of each other’s goods, disrupting global trade. They agreed last January to postpone further penalties but most taxes already imposed stayed in place.

Beijing agreed to narrow its trade surplus with the United States by purchasing more American soybeans and other exports. It fell short of the targets set due to the coronaviru­s pandemic and bought about 55 percent of the promised goods.

China’s foreign trade situation is “severe and complicate­d,” Wang said. He said Beijing is launching e-commerce and other initiative­s to encourage sales. One focus will be markets in its “Belt and Road Initiative” to build ports, railways and other trade-related infrastruc­ture.

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