Mixed Messages..Hang On The Ride Has Just Begun

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Real Estate Agent with Benchmark Realty TN 288457

As the Dow Jones takes a dip in trading based on international investors selling off investments in the subprime but high yielding home loan market, we see applications for new mortgages surge???? If you like wooden roller coasters that drop and make you feel like your stomach is in your throat than the next 6 months is for you.... Below is a report that came out on 8/8/07 the day before the Dow Jones average adjusted downward 380 points amidst fears of further bad reports from mortgage lenders....

Oh and by the way the word on the street is getting louder that Bank of America is really ready to make the big move to take over Countrywide.... 

NEW YORK - Mortgage applications rose for the first time in three weeks as interest rates fell sharply and demand surged for home purchase and refinance loans, an industry group said Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Aug. 3 rose 8.1% to 656.5, highest level since early June.

The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 1.2% to 626.0.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.41%, down 0.09 percentage point from the previous week. Interest rates were below year-ago levels of 6.45%.

The MBA's seasonally adjusted purchase index, widely considered a timely gauge of U.S. home sales, rose 7.4% to 447.4, well above its year-earlier level of 388.9.

Prevacid Anyone???

 

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Rainmaker
387,816
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Interesting and informative summary.  It looks like this will be "interesting for some time to come."
Aug 09, 2007 11:26 AM #1
Rainer
434,914
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

PM,

Won`t worry about a false market. It`s been like that for years. Soon, the boys on the street will once agin "pound the tables" that the economy is OK, Real Estate and financial instutions will confirm and once again the Dow will move higher. That and as we near Christmas the Boys on the Street must look for their huge bonuses that are going to be due!

Aug 09, 2007 11:35 AM #2
Rainer
10,225
Maggie Bafalon
Frank Howard Allen Realtors - Sonoma, CA
e-Pro, CHMS, CNS

Interesting and a new part of all our lives. I'm curious about your opinion of the $120B that the european bank put into the system today?  Same commentator said also that loans in Europe are beginning to have exactly the same problem.

Thanks for your blog.  Maggie

maggie@cbsonoma.com

Aug 09, 2007 11:37 AM #3
Rainer
304,164
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hi Paul,
We all understand that this business is and always will be up and down.  Perhaps one of the benefits is that the best of the best survive.
Aug 11, 2007 12:57 AM #4
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Rainmaker
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Paul Moye

Broker, GRI, SRES
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