Purchase Mortgage Applications Drop 7.1%
From Reuters:
US home loan demand fell despite lower rates
"U.S. mortgage applications fell last week, driven by a steep decline in home purchasing loans even as interest rates dropped, an industry trade group said on Wednesday."
"The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended May 19 decreased 6.0 percent to 552.6 from the previous week's 588.0."
"The MBA's seasonally adjusted purchase mortgage index fell 7.1 percent to 396.4. The purchase index -- considered a timely gauge of U.S. home sales -- was also below its year-ago level of 482.3."
"Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.61 percent, down 0.05 percentage point from the previous week, which was its highest level in nearly four years."
"Fixed 15-year mortgage rates averaged 6.23 percent, down from 6.26 percent the previous week. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 6.02 percent from 6.07 percent."
"The ARM share of activity rose to 30.5 percent of total applications last week from 29.9 percent the previous week."
US home loan demand fell despite lower rates
"U.S. mortgage applications fell last week, driven by a steep decline in home purchasing loans even as interest rates dropped, an industry trade group said on Wednesday."
"The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended May 19 decreased 6.0 percent to 552.6 from the previous week's 588.0."
"The MBA's seasonally adjusted purchase mortgage index fell 7.1 percent to 396.4. The purchase index -- considered a timely gauge of U.S. home sales -- was also below its year-ago level of 482.3."
"Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.61 percent, down 0.05 percentage point from the previous week, which was its highest level in nearly four years."
"Fixed 15-year mortgage rates averaged 6.23 percent, down from 6.26 percent the previous week. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 6.02 percent from 6.07 percent."
"The ARM share of activity rose to 30.5 percent of total applications last week from 29.9 percent the previous week."
32 Comments:
From Bloomberg:
U.S. MBA's Mortgage Applications Index Fell 6% Last Week
The Mortgage Bankers Association's index of applications to buy a home or refinance an existing loan dropped 6 percent to 552.6 from 588 the prior week. The gauge of purchases fell 7.1 percent, also the biggest decline in three months, to 396.4.
...
``The housing market is coming down fairly sharply,'' Robert Mellman, an economist at JPMorgan Chase & Co. in New York. ``We should be stabilizing at lower levels of home sales and housing starts. Overall, economic growth is slowing.''
via Jersey Shore Bubble blog-
here's a link to Dwek's properties:
http://tinyurl.com/hy5q5
I did a rough count. It looks like at least 300! Wonder how much the banks will want for them?
JM
The new home sales numbers just released show a larger than expected jump in number of new homes sold.
How is this happening if the purchase mortgage applications % is dropping?
http://biz.yahoo.com/ap/060524/economy.html?.v=7
Sales of New Homes Jump Unexpectedly
"The pace of activity caught economists by surprise. They had been expecting a decline in sales, reflecting the fact that mortgage rates have been climbing in recent weeks and now stand at the highest level in nearly four years."
Tomorrow you will see the same decline in existing home sales data as well.
The fed is done raising rates. Even now, the 2 year note rates are not up to the fed funds rate of 5 %. All that is going on is a lot of jawboning & posturing about inflation.
CNS
rentinginnj:
On your first point, yeah, I don't know to many homeowners that are throwing in large flat panel HDTV sets with the purchase...you'd have to pry that from the guy's cold, dead hands first...
JM
Grim -
Why not post a link on New Home Sales numbers also?
Is it possible that the new home sales number are not seasonal adjusted. I am a little confusing with price increase. If the builder gave more incentive, how is possible the new home price are increasing.
grim should post the article on new home sales in front and start a new thread.
i think it deserves the same attention and it will also generate more traffic.
I agree...I'm sure a lot of people will want to weigh in on those numbers.
Grim might be filtering it out again
How can we compete?....Headline News -
WASHINGTON (Reuters) - Sales of new U.S. homes defied predictions of a slowdown in April and rose 4.9 percent while prices climbed, although the supply of homes for sale hit a record, a government report showed on Wednesday.
rentinginnj -
what a great analysis. awesome!
I heard that they just revised down the February new homes sales number to make the March number look like a bigger increase than it actually was. I wouldn't put it past them to pull something like that.
BP
It is amazing the twists and lies the media is reporting the public -Since when do they treat this like tabloid info. and run with it. Don't they look to see the real facts? Unbelievable.
To all the Anonymous hecklers,
If you'd like to pay my salary, I'll be glad to post everything as soon as it happens. But until that happens, I still have a job, and unfortunately, that job takes priority during the hours of 8 to 5.
As it is, I get up half an hour earlier in the morning to make sure there is at least one or two posts up for the early risers. During the day I usually skim the news and will post it up when I've got a few free minutes. When I get home from work I spend at least another hour posting things up.
My current going rate is $150 per hour. So if you'd like a dedicated hour of my time I'll gladly post my paypal account up.
grim
Are the new sales # from homes with new contracts or older contracts that are just now closing?
I still don't buy it - but this is a great incentive for the realtors and sellers to keep those prices at all time highs.
Actually, had they not revised down the February number, the number they just reported would have indicated a DROP in new homes sales! What a pathetic sham...
..."Grim might be filtering it out again"... Don't worry - we know this is from some realtor or seller - most of us are here b/c we want the truth and can spot a lie when presented with it.
RE: Paying grim's salary
Hey, Mr. Grumpy Gills, sorry, no can do. It's just too hard to prove you have the right to work in this country.
;)
Grim,
If you don't mind my asking - what's your job? How do you get away with maintaining this blog (posting, replying, emails, etc) while you're on the job?
Just curious.
minutesfromnyc - I don't feel I "missed the boat" - I just don't want to over pay for a house! I think today's new housing numbers are false. I don't see any "under contract" or "sold" signs around.
House prices about to plunge off the cliff.
Papapapapa PANIC will set in.
Babababababa BOYCOTT!
NO MAAS to greedy sellers/starving one-way realtors
Booooooyaaaaaaa
Bob
It' so typical with this blog where articles and news reports that are considered "positive" for the pro-bubble-burst are readily available and embraced as facts.
On the other hand, anything contrary are quickly dismissed and given the conspiracy spin.
Who's really in denial?
...and by the way no I'm neither a realtor nor a seller. Just somebody trying to be as objective as possible. Not surprisingly only one side is taken seriously on this blog.
anon 2:44
don't worry you're not alone with that sentiment. not everyone here is as one-sided as the posters. some of us go through it with an objective eye and don't bother posting if only to avoid being labeled a realtor ;)
To the Realtors -
check out the name of this blog. what do you expect?
The starving realtors coming to visit us?
Bring it on realtors!
Keep up the chatter cuz the buyers are in control now. Start kissing up!
Boycott overinflated Houses!
Boooooooooooyaaaaaa
Bob
Your allegiance is to Buyers now or starve realtors.
So start getting "SUBSTANTIAL" price cuts like 25% lower and just maybe a few just a few buyers "may" emerge.
But for now STARVE!
Boycott Bidding On houses!
Boooooyaaaaaaaa
Bob
I feel down 33% is where we are going to see resistance. If you look at most markets the last ~33% increase has been drastic.
I can't believe anyone would write in this blog that there is nothing wrong with the housing market today. You must have your kitchen wallpapered with Pets.com stock certificates!
anon @ 2:44 ..
I will read you articles if you posted them.
anon 2:44
... or do you want to sell your house in the future to fund your retirement?
If i pay more, my retirement plan goes down the drain.
If you sell for what i believe is fair value, your retirement plan goes down the drain.
Do I like to buy a house?
Definite yes
Would i like to buy a house at the cost of my retirement plan?
Hell no
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