Posted on 06/02/2010 5:09:30 PM PDT by Rational Thought
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 28, 2010.
"With another week of historically low mortgage rates, the trend from the prior three weeks continued, as refinance applications increased while purchase applications dropped. Purchase applications are now almost 40 percent below their level four weeks ago, while the refinance share, at 74 percent, is at its highest level since December," said Michael Fratantoni, MBA's Vice President of Research and Economics.
The true barometer of the health of housing rests in May housing data..not April. If the recent downtrend in purchase apps holds any clue as to what sort of results we'll see in May, it won't be pretty. Anecdotal evidence is highly supportive of this theory. Heck, besides the drastic decline in purchase demand we've seen, pull-through on refi apps is poor thanks to the vast variety of hoops that must be jumped through before a loan can be cleared to close.
(Excerpt) Read more at mortgagenewsdaily.com ...
In the meantime, can we here more from Joe Biden on how the Stimulus worked so well?
Probably the market is waiting for the next round of “emergency” stimulus. It’s hard to believe that Congress and the President won’t throw a few more hundred billion $$ on the bonfire.
The gooberment uses some part of the economy as a recovery talking point and the next day that segment collapses. obama is truly EPIC FAIL!
LLS
So many “green shoots” should be about mowing time soon
Anyone know the latest rate on a 10yr refi?
“The true barometer of the health of housing rests in May housing data..not April”
That’s probably an overstatement. The gvt incentives undoubtedly moved May, June, July purchases into April. So May would show a bigger than real decline. April would show a bigger than real increase.
I don’t know. I am currently doing a 15 yr at 3.875% with 1.25 points.
And I’m trying to buy my first house right now.
That’s good!
If it is this bad with these interest rates, it is very scary to imagine [much] higher rates. Which are inevitable with the printing presses running as they are. When demand for T bills drops (more), as it will, Treasuries will move up. Significantly. It’s not hard to see 8% on the horizon. Mortgage rates will have to follow.
If these numbers were in a Republican Administration, the press would be howling bloody murder. Hell, the Dems would be calling for resignation.
Anyone noticed how the “homeless” population hasn’t increased by ONE person since Hussein took office?
I’d love to do a refi right now but with employment so sketchy it isn’t likely to happen. Hmmm I wonder if people’s fear of losing their jobs could be the basis for the housing market slump. Naaah, what am I saying, we’re in a recovery.
In addition, I had read a couple of days ago that 40% of the purchases in April have already canceled.
In nearly every category, the March and April numbers were better than the May information so far. The minute the stock market retreated from its high due to the European mess and the Gulf spill, consumer wallets and purses tightened. I think that the economy won’t completely tank, but there is going to be a good-sized lull at the least.
I’ll pray that you are successful.
LLS
Wait until at least late summer. Prices are still going down and selling prices go down just before school starts back up and into the fall and winter.
Obamaman and the Dems continue their destruction of the US...
Thanks, I need all the help I can get.
I didn’t plan very well for my retirement
and have paid untold thousands in rent through
the years, now I want someplace to live out the
time I have left and am forced to do it on VA comp
and SS. I’m looking for a small house with a barn
so I can set up my blacksmith shop again but barns
are hard to come by, especially in my price range.
Now will have to settle for buying a house and
building a shop which at 64 is no small job.
Just praying it all doesn’t fall apart before I
can find a country redoubt.
“Anyone noticed how the “homeless” population hasn’t increased by ONE person since Hussein took office?”
What homeless population? I haven’t heard anything about any homeless people.
Apparently, once the Messiah took over, they all found homes.
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