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mba: Mortgage Purchase Applications Showing Stability - 08/27/09 08:15 AM
The MBA reported on Wednesday that the mortgage purchase application index rose 1% this past week to 280.5.
While the reading of 280.5 does not represent overly encouraging demand for real estate, the index has slowly risen for four consecutive weeks.
The 30-year fixed rate mortgage rose from 5.15% to 5.24% for the week ending August 21st.
Between the recent surges in existing and new home sales, as well as the past four weeks of mortgage purchase applications, it appears that demand has stabilized thanks to precipitous home value declines, an $8,000 first time home buyer tax credit, and a $1.25 trillion Fed funny … (2 comments)
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mba: Mortgage Purchase Applications Rise 3.9% The Past Week - 08/20/09 07:49 AM
According to the MBA, after five consecutive weeks in which the mortgage purchase application index remained below 270, signaling weak demand for real estate, the index rose 3.9% this past week to 277.7.
The 30-year fixed rate mortgage fell from 5.38% to 5.15% for the week ending August 14th.
Mortgage purchase applications are an indicator of future demand for real estate. Typically a potential buyer will apply for a mortgage, write a contract that goes "pending", and then eventually close on the property for a "sale".
The reason why demand is a critical component of a housing recovery is because the number … (3 comments)
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mba: Mortgage Purchase Applications Remain Steady But Weak - 08/12/09 08:06 AM
The Mortgage Bankers Association announced today that the mortgage purchase application index remains steady but weak as it rose just 1.1% from last week to 267.3.
It is the fifth consecutive week that the index has been below 270.
The 30-year fixed rate mortgage jumped from 5.17% to 5.36% for the week ending the July 31, 2009.
This data continues to reinforce two ongoing trends. First, while demand for real estate appears to have bottomed from the lows we saw in January in the NAR existing home sales report, the current demand is being outpaced by the rate of homes going into foreclosure. In … (0 comments)
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mba: Mortgage Purchase Applications Struggle To Gain Ground - 08/06/09 08:49 AM
The Mortgage Bankers Association announced on Wednesday that the mortgage purchase application index rose just 0.9% from the previous week to 264.4.
This is the fourth consecutive week in which the index has remained below 265, a signal that demand for real estate continues to face a headwind.
The broader measure for the purchase index, the 4-week moving average, is down -2%.
The 30-year fixed rate mortgage fell from 5.36% to 5.17%.
While the NAR's pending home sales index continues to show strength, the MBA's purchase application index is telling a different story.
The reason this index is relevant is because it … (4 comments)
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mba: MBA: Mortgage Purchase Applications Unchanged - 07/30/09 08:24 AM
According to the Mortgage Bankers Association, the rate of mortgage purchase applications for the week ending July 24th remained unchanged from the previous week at 262.
The problem is that an index of 262 indicates continued weak demand for real estate. After hitting a 12-week high of 285.6 for the week ending July 3rd, the index has struggled the past three weeks at 258.8, 262.1, and now 262.
The concern is that while home sales seem to have stabilized and fallen into a sustainable range, the current pace of home sales is insufficient in dealing with the pace of foreclosure filings which have surged 33% year … (1 comments)
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mba: Existing Home Sales Up 3.6% in June, Why That Is Not Enough - 07/26/09 10:10 AM
The NAR announced this week that existing home sales rose 3.6% to a 4.89 million seasonally adjusted rate, the strongest pace since October of 2008. The rate of sales while encouraging, is still off -0.2% from last year despite an $8,000 first time home buyer tax credit and record housing affordability.
Inventory of existing homes for sale fell -0.7% from last month to 3.823 million and is down -14.9% from the same time last year.
The result is that the month's supply of housing is down -4.1% from last month to a 9.4 month supply and is down -14.5% from June of last year.
Without … (31 comments)
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mba: MBA: Mortgage Purchase Applications Fall Sharply As Rates Plunge - 07/15/09 10:50 PM
According to the Mortgage Bankers Association and their weekly mortgage application survey, mortgage purchase applications fell 9.4% from the previous week to 258.8. This is the lowest reading in 7 weeks when the survey fell to 256.6 during the week of May 22.
The reason the purchase application is relevant is because it is an indicator of future demand for real estate. And the reason this anemic demand for real estate is significant is because there is another tsunami of foreclosures that will be making land-fall within the next 6-12 months.
Interestingly, the 30-year fixed rate mortgage fell from 5.34% last … (2 comments)
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mba: MBA: Mortgage Purchase Applications Hit 10-Week High - 06/24/09 07:58 AM
In the latest sign that the housing market is indifferent to sub 5% mortgage rates, according to the Mortgage Bankers Association, the mortgage purchase application index jumped 7.3% to 280.3, the highest reading in over 10 weeks. This was despite the fact the average 30-year fixed rate mortgage was 5.44% for the week ending June 19th.
Here is a comparison between NAR's seasonally adjusted existing home sales and Freddie Mac's 30-year fixed rate mortgage survey over the past several months, this data reveals that record low mortgage rates have had no meaningful impact on demand. You can call it the law of diminishing returns, price … (6 comments)
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Mark MacKenzie
Phoenix,
AZ
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Mark MacKenzie Real Estate Planning
Office Phone: (480) 600-0330
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