Skip to comments.Mortgage Purchase and Refi Applications Rise (But Purchase Apps Remain Below Bubble Levels)
Posted on 01/09/2013 4:15:15 PM PST by whitedog57
According to the Mortgage Bankers Association (MBA), mortgage applications rose 11.7% after the Holiday slump of the previous week.
Mortgage purchase applications rose 9.56% SA and 48.53% NSA. Mortgage refinancing applications rose 12.4% SA and 49.52% NSA.
Now, before you get excited about the increase in mortgage purchase applications, they are still stuck in the red zone since 2010, far below the average from 2000-2010.
Meanwhile, mortgage refinancing applications remain above the long-run average.
It is no wonder. With 15 government mortgage financing programs (HAMP, HARP, AG Settlement, etc) and The Feds manipulation of interest (and mortgage) rates, mortgage rates continue to be far below their long-run average.
Here is the Federal Reserves Balance sheet. And The Fed of NY just purchased $300 Million Of Treasuries that are to be auctioned off tomorrow! The Fed isnt even waiting to see if other investors (like China /sarc) want to purchase the debt.
In summary, mortgage purchase applications remain in the red zone below bubble levels and mortgage refi applications continue to remain elevated above the long-run average.
Speaking of government mortgage refi programs, here is my interview on Fox Business with Gerri Willis from last night. The other guest is Bruce Karl Marks from NACA, The Neighborhood Assistance Corporation of America.
Unrelated to mortgages and housing, platinum prices have jumped. Talk of the trillion dollar platinum coins, per chance?
Mortgage applications happen more on days other than Thanksgiving Day, too. ;-)