mortgage rates: Mortgage Purchase Applications Remain Steady But Weak
- 08/12/09 01:06 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)
mortgage rates: NAR: Housing Affordability Falls To A 6-Month Low
- 08/05/09 01:44 AM
According to the NAR, housing affordability fell again in June to a reading of 159.2. This is the lowest reading since December when we saw 159.1. The decline in housing affordability is due to a trend of rising mortgage rates, an increase in the median home value which is driven by seasonal variances, and a decline in median family income to the lowest point in over a year. What may come as a surprise to many though is that despite this fall in housing affordability, pending home sales were the strongest they have been in over a year in June. The evidence … (4 comments)
mortgage rates: Existing Home Sales Indifferent To Rising Mortgage Rates
- 07/30/09 01:49 AM
With so much continuing to be made of a housing recovery being contingent upon historically low mortgage rates and a cheap Fed funny money monetary policy, I thought it would be worth revisiting the ongoing relationship between existing home sales and mortgage rates that continues to defy some of the most seasoned economists' logic, including NAR's own Lawrence Yun. 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 … (5 comments)
mortgage rates: MBA: Mortgage Purchase Applications Fall Sharply As Rates Plunge
- 07/15/09 03:50 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)
mortgage rates: Housing Affordability, Mortgage Rates, And Home Sales
- 07/03/09 01:21 AM
The NAR recently published their May Housing Affordability Index which showed that while affordability did drop from a record high 178.8 in April to 171.6 in May, it remains well above historic norms. Prior to this year, the highest housing affordability index reading was 147.9 in 1973. The first five months of 2009 the index has averaged 174.72. To get some perspective on the current index for 2009 and the relationship to existing home sales, here is what the housing affordability index has looked like over the past couple of years according to the NAR: Affordability Index / Mortgage Rates / Existing … (0 comments)
mortgage rates: Mortgage Purchase Applications Slip 3.5% For The Week
- 06/18/09 04:13 AM
According to the Mortgage Bankers Association and their weekly survey of mortgage applications, the mortgage purchase application index slipped 3.5% to 261.2 as rates moderated from 5.57% to 5.5% for the week. The four-week moving average for the purchase index is up 0.7% since rates have surged nearly a full percentage point. This data gives further support to my argument that mortgages rates below 5% have had or will have little if any impact on stimulating new demand for real estate. In fact, to take it one step further, rates below 6% have had virtually no impact on demand. Unfortunately, it cost the Fed … (3 comments)
mortgage rates: NAR's Lawrence Yun, The 30-Year Fixed, and Home Sales
- 06/11/09 07:27 AM
The Mortgage Bankers Association announced on Wednesday that the 30-year fixed rate mortgage surged to 5.57% from the previous week at 5.25%. This is the highest rate for the weekly survey since the week of November 26th of 2008 when the 30-year was at 5.99%. What is interesting is that despite the 30-year fixed rising nearly a full percentage point over the past month, the demand for mortgage purchase applications has not been impacted. And the reason purchase applications have not been impacted is because there was never a bounce when rates plunged to historic lows, housing affordability was already the highest on record. … (11 comments)
mortgage rates: Mortgage Purchase Applications Hold Steady
- 06/10/09 02:29 AM
According to the Mortgage Bankers Association and their weekly survey of applications, mortgage purchase applications are holding steady despite a recent surge in mortgage rates. The purchase application index rose 1.1% from last week to 270.7 despite the 30-year fixed rate mortgage surging from 5.25% to 5.57%. Not that anybody should be surprised by this "resilience" as there has been virtually no stimulative impact on demand for mortgage purchase applications or demand for real estate as rates plunged to historic lows. 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: Sep … (4 comments)
mortgage rates: Mortgage Rates Jump To 4-Month High
- 06/05/09 02:26 AM
The Mortgage Bankers Association announced on Wednesday that the 30-year fixed rate mortgage jumped from 4.81% to 5.25%, the highest rate since the week of February 3rd when the 30-year hit 5.28%. While this may be a concern for some in Washington or at the NAR, the past several months of home sales tell a different story. What we have seen over the past five months is that there has not been any difference in the demand for real estate as rates have fallen nearly 1.5 points, from 6% to nearly 4.5%. It was never about lower mortgage rates. With housing affordability already the … (2 comments)
mortgage rates: MBA: Mortgage Rates Hit 9-Week High
- 05/28/09 11:36 AM
According to the Mortgage Bankers Association and their weekly mortgage application index, the 30-year fixed rate mortgage jumped from 4.69% last week to 4.81% this week, a new 9-week high. While this modest rise in mortgage rates off of their recent historic lows will negatively impact housing affordability, it is not likely to have any impact on actual demand for real estate. As I have written about before, it is no longer about housing affordability, housing affordability, according to the NAR, even as recent as November of 2008 when mortgage rates were at 6.26%, was already the highest on record dating back to 1973. … (1 comments)
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. 
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