Wednesday, March 01, 2006

Mortgage rates fell, but so did applications...

I wish there was something more exciting to write about; although just another update on the status of mortgage applications.

MBA: Mortgage applications tick lower

Mortgage applications fell last week as lower interest rates failed to spur demand for loans to purchase homes, an industry trade group said Wednesday.

..

The 30-year fixed-rate mortgage, the industry benchmark, is substantially above its 2005 low of 5.47 percent in late June, but below its 2005 high of 6.33 percent reached in the week of Nov. 11.

..

Analysts say an increasing number of borrowers have been converting adjustable-rate mortgages into new fixed-rate loans as the difference between adjustable and fixed mortgage interest rates narrows. While this has been a factor behind the recent rise in demand for refinancing, it failed to spur activity last week.

So even with the rates on the 30yr mortgage declining slightly (.04 %) it failed to help with the current market situation. On the flip side; I'm sure the real estate industry would be ecstatic to report that Average home prices were up 13 percent in 2005.

Cute reading, but we all know that 2005 ended 3 months ago, and now we're dealing with an entirely new market.

-Richie

15 Comments:

Blogger Metroplexual said...

This is the beginning of the ride down. I suspect the reason the loan application #s is falling is the borrowers ar FB's stuck in ARM or some other god awful loan and can't qualify for anything else. I would also speculate that the paper writers are bing scrutinized more by the MBS buyers.

3/01/2006 04:22:00 PM  
Anonymous Anonymous said...

Founder of Zillow.com on "Your World with Cavuto" today. Re-airs tonight at 1:00AM.

3/01/2006 06:25:00 PM  
Anonymous Anonymous said...

Here comes the "spring market" -- there are 4 new listings today in the town I'm watching, after months without new inventory.

They must have all waited for March 1st.

Hope they sit for months, because I'm not going to make a move on them at these prices...

3/02/2006 08:43:00 AM  
Blogger Metroplexual said...

Yet another article on the poor savings rate. Sigh!

http://www.usatoday.com/money/perfi/general/2006-03-01-savings-cover-usat_x.htm

3/02/2006 08:48:00 AM  
Anonymous Anonymous said...

What I've been learning here is that homes will probably still sell, and may not sit as long if prices come down a bit and folks jump into buy at a slight discount.
My own completely unscientific monitoring of 14 listings I received in Decmeber which are made up of 4 homes and 11 condos shows 3 condos where sold at 4.8%, 2.2% and 4.5% under list price, average days on market for these was 104 days. 5 houses have come under contract in late jan/early feb., average days on market 96.
Not enough data to be suggestive of anything but these are homes I previewed so it's of interest to me.

3/02/2006 09:46:00 AM  
Anonymous Anonymous said...

"What I've been learning here is that homes will probably still sell, and may not sit as long if prices come down a bit and folks jump into buy at a slight discount."

Couole be, we'll see how the spring unfolds.

I've been watching houses sit for weeks and months, which would have sold in days last year (nice size lots, well maintained, etc).

The market has changed -- 2005 is over.

3/02/2006 10:37:00 AM  
Anonymous Anonymous said...

Just looked at several more NNJ towns, and there are numerous price drops, and rising inventory.

Some buyers may jump on these "bargains" early, and fuel a short-lived dead cat bounce.

I'm going to wait regardless; if prices are dropping by $50K in just 2-3 months, it's way too early to jump on this bubble-pop train.

Will a wait of 6 months yield $100K savings? It's looking that way. And a wait of 12 months?

3/02/2006 12:10:00 PM  
Anonymous Anonymous said...

Here's one from Ridgewood, in Bergen county...

This house was priced at $839K at an open house 4 days ago, and now it's dropped to $799K.

The realtor scum have changed the MLS #, of course, and relisted:

Old listing @ $839K:
http://www.realtor.com/Prop/1055337532

New listing @ $799K:
http://www.realtor.com/Prop/1055293953


Also note that the old listing at $839K had almost no property details entered, and was just a quick zero-work listing by Weichert.

The new $799K listing has all the property details filled out, room dimensions, etc, as if Weichert actually spent 5 minutes entering the listing.

Guess realtors are realizing they now actually have to do some work...

3/02/2006 12:19:00 PM  
Blogger Richie said...

Wow! Only $3,745 per month for a 75 year old house!!

what a bargain!!

My monthly mortgage + tax payment is less then that..

3/02/2006 03:33:00 PM  
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