Skip to comments.Happy New Year! Mortgage Applications Fall 10.4%, Jobless Claims Rise 372k
Posted on 01/03/2013 8:56:38 AM PST by whitedog57
According to the Mortgage Bankers Association (MBA) applications for a mortgage fell 10.4% from the previous week.
On a seasonally adjusted basis (SA), purchase applications fell 10.51%. It remains in the red zone since 2010.
Refinancing applications fell 10.39%. Lets see if the new year shows a further slowdown in refinancings.
On a non seasonally adjusted basis (NSA), purchase applications fell 45.99%. Refinancing applications fell 46.23%.
The plunge in applications is the annual Holiday seasonal where mortgage applications fall.
Mortgage rates continue to remain low, but are slowly rising (as Treasury yields begin rising as well).
Taxes just went up on most Americans as of January 1st: the 2% increase in withholding, Obamacare taxes and the 2.3% Medicare Device Excise Tax (even though I bought something at Cabela, paid the excise tax, and it sure wasnt a medical device that I purchased!)
On the (un)employment front, initial jobless claims (SA) rose 372,000 from the previous week.
The Bloomberg Consumer Comfort index rose to -31.8, but still has not reached 0 since the recession that ended in June 2009.
Finally, the NEW YORK PURCHASING MANAGER Current Business Conditions SA rose to 54.3, still below the long-run average of 55.17.
Not a good start to our Centrally-planned economy for 2013.
I’m going to blame the unexpected holiday season ...
But, but...John Bonehead averted the fiscal cliff!
Actually it's a perfect start for the Centrally-planned economy. Coming along quite nicely now........
At the end of the road of default lies much smaller government, and that’s what political regulator folks on all sides are afraid of. They threaten to continue running big government on funny money. But after the real bond investors are gone, more foreclosures, business closings, etc., that will be impossible. The value of money is based on useful things produced on our own soil.
Hmmm...we sold a house and closed on the 27th of Dec. The title company, and bank said they were booked solid all day, every day. the last couple weeks with closings...they were even using side rooms at the title company to close because all the conference rooms were booked.
The banker, and the title company owner said the reasons they thought they were booked up were:
Buyers wanting to close because of homestead exemption on property tax (have to own house by Dec. 31 to file for it.)
Sellers not wanting to pay higher capital gains taxes in the new year.
And sellers of short sales (applies to foreclosures too, but nothing they can do about timing if you’re foreclosed on), wanting to escape the taxes they’ll owe on the money that is “forgiven” by the bank in a foreclosure or short sale. The banker said The Mortgage Forgiveness Debt Relief Act and Debt Cancellation expires and in 2013 folks will be paying the IRS taxes on money forgiven by the bank in short sales and foreclosures.
Those were their suppositions for being so busy this past December.
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