Home Loan Applications Mostly Flat
From Reuters:
US home refinancings at 2006 low despite rates dip
"U.S. home loan refinancing applications last week sunk to their lowest this year and new home mortgages barely budged, lending support to the view that even lower interest rates will not heat up the already cooling U.S. housing market, an industry group's figures showed on Wednesday."
"The Mortgage Bankers Association's seasonally adjusted index of mortgage application activity -- which is made up of both refinancing and purchasing loans -- fell 1.4 percent to 534.4 in the week ending June 2 from the previous week's 541.9."
"The seasonally adjusted refinancing index last week fell 3.8 percent to 1,356.0, its lowest level since the week ended Dec. 30, 2005 when its reached 1,363.2."
"A year earlier the index stood at 2,362.1."
"The group's seasonally adjusted purchase mortgage index was nearly unchanged at 395.6 from the preceding week's 395.5 figure."
"However, the purchase index--considered a timely gauge of U.S. home sales--was substantially below its year-ago level of 479.3."
US home refinancings at 2006 low despite rates dip
"U.S. home loan refinancing applications last week sunk to their lowest this year and new home mortgages barely budged, lending support to the view that even lower interest rates will not heat up the already cooling U.S. housing market, an industry group's figures showed on Wednesday."
"The Mortgage Bankers Association's seasonally adjusted index of mortgage application activity -- which is made up of both refinancing and purchasing loans -- fell 1.4 percent to 534.4 in the week ending June 2 from the previous week's 541.9."
"The seasonally adjusted refinancing index last week fell 3.8 percent to 1,356.0, its lowest level since the week ended Dec. 30, 2005 when its reached 1,363.2."
"A year earlier the index stood at 2,362.1."
"The group's seasonally adjusted purchase mortgage index was nearly unchanged at 395.6 from the preceding week's 395.5 figure."
"However, the purchase index--considered a timely gauge of U.S. home sales--was substantially below its year-ago level of 479.3."
14 Comments:
Many took ARM and IO loans because they could not afford traditional fixed products.
Refinancing is an impossibility for most of these people. And we haven't even introduced the problems associated with declining values. You can't refi if you are underwater without a check for the difference.
grim
took a different route to work today in essex county. there are for sale signs EVERYWHERE. there should be no doubt prices are heading lower led by those who have to sell (bought another property, job transfer, retirement/relocation, broke, etc.)
sit tight folks. in 6 months you'll be able to take at least another 10% off what they're lowest accepted offer would be today.
anon 9:31 was mine (Richard). website a little buggy today.
here's another example of deep price jobs (prob due to purchase of another home). i saw this property in new providence (2276512) back in february. asking price $629k. well it didn't sell after dropping to $589k so they relisted at $555k. now today we're at $519k for a 17.4% drop, and it isn't even sold yet!
now how stupid would one of felt if you bought at $550k which would've been considered a great bargain off asking?
this is why asking prices mean NOTHING. you have to look at comps and the direction of the market.
"Many took ARM and IO loans because they could not afford traditional fixed products. Refinancing is an impossibility for most of these people."
Much pain -- can't afford the increasing mortgage payments, and can't bail out by selling to a Greater Fool in the post-bubble market.
What would Suzanne do?
BTW who is this Suzanne that everyone keeps jokingly referring?
Is this Suze Orman?
Andy
Hah Hah Ho..guess Andy missed the show.
Where's the link to that C21 commercial "Suzanne says..."
Pat
"Suzanne researched this" - is an inside joke among real estate bloggers. It refers to a Century 21 television ad where a wife and realtor berate a Homer Simpson-esque husband for hesitating on a real estate deal.
The Debate (Video)
That "Debate" TV commercial will go down in history as the turning point of the Great Real Estate Bust.
People will read about it in textbooks.
Maybe they can't refi from their ARMs to a fixed rate.
Most probably can't afford to.Big problema.
Bababababababa
Boycott Snoot Raised Chatham Houses
Booooooooycott Houses
Bob
Suzanne. HAAHAAAAA!!! Yes, I love that commercial.
That commercial is an advertisement for marriage counseling.
Maybe Dr. Phil can buy the rights to it from C21, and the profits can go towards early retirement windows for C21 agents.
That will help clear some of them.
Suzanne and the rest of them can hook up with out-of-work travel agents to start a new industry: We Housesit while you are on vacation.
Pat
Time for another round of tax cuts.
They have to borrow, that is run up the credit card dept to pay the mortgage.
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