Watchhttp://www.mbaa.org/NewsandMedia/PressCenter/82246.htm
WASHINGTON, D.C. (October 3, 2012) — Mortgage applications increased 16.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 28, 2012.
“Refinance application volume jumped to the highest level in more than three years last week as each of the five mortgage rates in MBA's survey dropped to new record lows in the survey,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Financial markets continue to adjust to QE3, as the ongoing presence of the Federal Reserve as a significant buyer of mortgage-backed securities applies downward pressure on rates. Although there was a slight decline in the HARP share of refinance activity, the level of HARP volume remains steady.”
"The refinance share of mortgage activity increased to 83 percent of total applications from 81 percent the previous week."
*********************
So, 83% of applications were for REFI's, which means that 17% were for PURCHASES....
HARP declines.... are these people having a tough time qualifying??
Also, I wonder how many of these Refi applications end up being "approved"??
How does this bode for the Housing Recovery??
Follow
Befriend (3)
49 threads
368 comments
Oakland, CA
Call it Crazy says
Don't think so. If you qualify for a normal refi (with the addition of an unlimited LTV clause via HARP), you should have no problems.
If you don't qualify for normal refi due to a reason outside of exceeding 80% LTV, then you won't qualify for HARP.
Follow
Befriend (2)
60 threads
1,297 comments
Premium
Call it Crazy says
Pretty much expected ever since the annoucement of QE3 generated another refi cycle. Prettyy much everyone I know is working on their refi's right now.
Call it Crazy says
HARP declines as a % of total. The refi cycle noted above means everything else as a share of percentage went down.
Call it Crazy says
Most if not all are approved, some may have to take a 125 basis hit. The difference between this refi cycle and prior refi cycle is home appraisals likely went up which means more can likely refi as opposed to last summer. Also, with the appraisals, there are more opportunity to move loan from second to first.
Call it Crazy says
It's a positive factor. Locking in these rates means more homes will be off the market for sale prospectively. Locking in these rates means, millions just saved on average several thousand $$ annually.
Follow
Befriend (7)
29 threads
1,203 comments
31 male
Premium
it means that we can see the light at the end of the tunnel, even if that light is a freight train
The collective we is all the way in survival mode. The long term trend is still deleveraging of private debts. Oil is back down under 90 makes for a nice repreive for us working folk.
But we know where we've been, and we know where we're at, the question is , where are we going, and lowering interest rates seems more of a gimmick to keep prices where they are at now, not to spur further growth of housing debt (which is the driving force for higher prices)
Follow
Befriend
228 threads
2,748 comments
errc says
Good point... the part that concerns me is that the bulk of applications are for refi's.... it's nice that these people might save a couple of bucks a month on their mortgage, but it doesn't do much for the overall economy...
If only 17% are for purchases, then that is really weak and won't help much.
Think about it, when someone buys a house, a lot of "revenue" gets injected in the local economy. Movers get hired, brokers make commission, attorneys earn fees, surveyors get business, title companies get work, etc....
Plus, the new home owner usually does a bunch of renovations like painting, carpet, window coverings, appliances, furniture, etc. , so many local companies get some business too...
If house purchases are down (only 17% applying for new mortgages), the local economy drags down too...
Follow
Befriend (3)
99 threads
464 comments
TROLL
Follow
Befriend (3)
99 threads
464 comments
Follow
Befriend (3)
15 threads
5,606 comments
Call it Crazy says
Stats obviously aren't your strong point. That 17% number is meaningless in the way you are trying to use it. The number you are looking for is the purchase index, so here you go:
"The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index also increased 4 percent compared with the previous week and was 11 percent higher than the same week one year ago."
So there you go. It's actually not weaker at all.