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Mortgage applications fall for third straight week


By Call it Crazy   Follow   Wed, 2 Jan 2013, 11:31pm PST   1,226 views   25 comments
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(Reuters) - Applications for home mortgages fell last week for the third consecutive week as refinancings fell to the lowest level since last April, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 10.4 percent in the week ended December 28.

The MBA's seasonally adjusted index of refinancing applications also fell 10.4 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, fell 10.5 percent. Both indexes dipped for a third straight week.

The refinance share of total mortgage activity stayed at 82 percent of applications.

http://news.yahoo.com/mortgage-applications-fall-third-straight-week-mba-120556681--business.html

Comments 1-25 of 25     Last »

Goran_K   Thu, 3 Jan 2013, 12:13am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 1

It's okay Call it Crazy, we just need more investors, and people to break out of credit jail. That's what e-man told me.

Kevin   Thu, 3 Jan 2013, 1:31am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 2

I'd expect refinancing to start falling off pretty rapidly from here on out. There's not much room for rates to go lower.

Inventory fell off a cliff at the end of November, so there aren't really any purchases to get a mortgage on. Depending on the city, listings are down 20-30% YoY. It seems like there are hardly any distressed sales popping up, so my guess is a lot of people refinanced and are going to sit tight for a while.

Call it Crazy   Thu, 3 Jan 2013, 1:32am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 3

Kevin says

It seems like there are hardly any distressed sales popping up, so my guess is a lot of people refinanced and are going to sit tight for a while.

Or, just default, stop paying and sit tight...

bubblesitter   Thu, 3 Jan 2013, 2:19am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 4

Now,some people will say,it is will not put a dent on home prices.

Kevin   Thu, 3 Jan 2013, 3:07am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 5

Call it Crazy says

Kevin says

It seems like there are hardly any distressed sales popping up, so my guess is a lot of people refinanced and are going to sit tight for a while.

Or, just default, stop paying and sit tight...

No. The people who were going to default already have. Rates are low enough now that payments have been cut by half. People are underwater still, but they're able to pay the bills so they'll stay.

Call it Crazy   Thu, 3 Jan 2013, 6:54am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 6

Kevin says

No. The people who were going to default already have. Rates are low enough now that payments have been cut by half. People are underwater still, but they're able to pay the bills so they'll stay.

What about the average 360K who file for first time unemployment each week. How long do they continue to pay their mortgages??

Kevin   Thu, 3 Jan 2013, 7:01am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 7

Call it Crazy says

Kevin says

No. The people who were going to default already have. Rates are low enough now that payments have been cut by half. People are underwater still, but they're able to pay the bills so they'll stay.

What about the average 360K who file for first time unemployment each week. How long do they continue to pay their mortgages??

Depends on the person. Many don't have mortgages to begin with.

Keep holding your breath for the next huge wave of foreclosures, though. I'm sure it'll happen if you just want it bad enough.

Goran_K   Thu, 3 Jan 2013, 7:07am PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 8

Call it Crazy says

What about the average 360K who file for first time unemployment each week. How long do they continue to pay their mortgages??

Well $1,800 a month for 2 years can buy a pretty decent pad with today's rates. :)

Call it Crazy   Thu, 3 Jan 2013, 7:07am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 9

Kevin says

Depends on the person. Many don't have mortgages to begin with.

What????? Only people without mortgages lose their jobs?? Really???

*

Kevin   Thu, 3 Jan 2013, 8:44am PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 10

Call it Crazy says

Kevin says

Depends on the person. Many don't have mortgages to begin with.

What????? Only people without mortgages lose their jobs?? Really???

*

You must have gone to the special school when you were a child.

Mark D   Thu, 3 Jan 2013, 9:07am PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 11

another biased article probably written by a typical republican bear who wishes everything would crash and burn so they can blame it on a black guy.

note the "article" doesn't take into account seasonality, the ever decreasing level of inventory and makes no mention of the fact that the amount of applications has INCREASED Y-o-Y.

"Applications for home mortgages fell last week for the third consecutive week as refinancings fell to the lowest level since last April"

Call it Crazy   Thu, 3 Jan 2013, 9:34am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 12

Mark D says

another biased article probably written by a typical republican bear who wishes everything would crash and burn so they can blame it on a black guy.

No, actually it looks like he's one of yours....

errc   Thu, 3 Jan 2013, 9:43am PST   Share   Quote   Permalink   Like (2)   Dislike     Comment 13

Infestor led rally will only go so far as rents will allow, and rents come from wages, so play along accordingly

mell   Thu, 3 Jan 2013, 10:44am PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 14

errc says

Infestor led rally will only go so far as rents will allow, and rents come from wages, so play along accordingly

InFestor, nice!

Philistine   Thu, 3 Jan 2013, 10:47am PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 15

Actually, mortgage applications are up 30+% year-over-year. December was up 3% over November. It was only the recent two weeks they decreased slightly:

http://www.housingwire.com/fastnews/2013/01/02/home-mortgage-applications-grow-december-capital-economics

Call it Crazy   Thu, 3 Jan 2013, 10:48am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 16

Kevin says

You must have gone to the special school when you were a child.

Wow, so that was you in the same class... imagine that!!

Call it Crazy   Thu, 3 Jan 2013, 10:58am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 17

Philistine says

Actually, mortgage applications are up 30+% year-over-year. December was up 3% over November. It was only the recent two weeks they decreased slightly:

http://www.housingwire.com/fastnews/2013/01/02/home-mortgage-applications-grow-december-capital-economics

That article data is from Capital Economics, not the MBA..

..."Researchers with Capital Economics say December application filings regained ground lost in November"

Try here:
http://www.mbaa.org/default.htm

Goran_K   Thu, 3 Jan 2013, 11:20pm PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 18

Week over week, or even YOY, mortgage applications for home purchases has been in the tank for the past 3-4 years, we're back to mid-90s levels now:

It's obvious new demand isn't coming from traditional buyers, it's infestors/speculators who are driving this market.

iwog   Thu, 3 Jan 2013, 11:32pm PST   Share   Quote   Permalink   Like (1)   Dislike (1)     Comment 19

bubblesitter says

Now,some people will say,it is will not put a dent on home prices.

It will not put a dent in home prices.

Refinances are down because (drum roll)..........interest rates have stopped falling! TADA!!!

Mobi   Thu, 3 Jan 2013, 11:43pm PST   Share   Quote   Permalink   Like   Dislike     Comment 20

Goran_K says

It's obvious new demand isn't coming from traditional buyers, it's
infestors/speculators who are driving this market.

I don't see this as a problem except for those who is dreaming to take advantage of another housing bubble. Investors is a mechanism to stablize the housing market (good or bad depending on your opinion.)

Goran_K   Thu, 3 Jan 2013, 11:54pm PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 21

Mobi says

I don't see this as a problem except for those who is dreaming to take advantage of another housing bubble. Investors is a mechanism to stablize the housing market (good or bad depending on your opinion.)

I don't either.

What I do contend is that investors by themselves can sustain a bull market. There are people on here who think housing will appreciate 30% in the next 3 years, and that it's a "conservative" prediction.

CaptainShuddup   Fri, 4 Jan 2013, 12:00am PST   Share   Quote   Permalink   Like (1)   Dislike (1)     Comment 22

Mark D says

another biased article probably written by a typical republican bear who wishes everything would crash and burn so they can blame it on a black guy.

Well I wish everything would crash and burn so we would get a new cast of characters. Ah who am I kidding, 50% of the people would still trust the old guard to turn things around.

Mobi   Fri, 4 Jan 2013, 1:04am PST   Share   Quote   Permalink   Like   Dislike     Comment 23

Goran_K says

I don't either.


What I do contend is that investors by themselves can sustain a bull market.
There are people on here who think housing will appreciate 30% in the next 3
years, and that it's a "conservative" prediction.

In some areas, it is bouncing back from oversold. In some areas, housing is just alwalys crazy. In my area, it is a gradual decline. YMMV. Overall, I don't see a NATIONAL housing bull market.

Call it Crazy   Fri, 4 Jan 2013, 1:30am PST   Share   Quote   Permalink   Like   Dislike (3)     Comment 24

Mobi says

In some areas, it is bouncing back from oversold. In some areas, housing is just alwalys crazy. In my area, it is a gradual decline. YMMV. Overall, I don't see a NATIONAL housing bull market.

Me neither... my state is also in a gradual decline with no bottom in sight.

Goran_K   Mon, 7 Jan 2013, 2:04am PST   Share   Quote   Permalink   Like   Dislike (1)     Comment 25

Mobi says

In some areas, it is bouncing back from oversold. In some areas, housing is just alwalys crazy. In my area, it is a gradual decline. YMMV. Overall, I don't see a NATIONAL housing bull market.

I also think some areas are literally back to 80s prices or less; Vegas, Phoenix, etc. They aren't going to crash anymore so I could see more appreciation in those markets if it comes.

But metro areas of California are looking at big declines.

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