patrick.net

any comments?

Wow, applications are at 1997 levels!

robertoaribas says

Mortgage applications rising is a sure sign that housing prices are about to plummet 99.99%. Are you new here or something?

Isnt mortgage app increase means more people buying homes? Can you please explain a bit

meetyaks says

robertoaribas says

Mortgage applications rising is a sure sign that housing prices are about to plummet 99.99%. Are you new here or something?

Isnt mortgage app increase means more people buying homes? Can you please explain a bit

Roberto is being sarcastic.

Heraclitusstudent says

Wow, applications are at 1997 levels!

Clearly they won't rise back to bubble levels. Or at least, I hope not. What level should they be at?

This is the chart from calculatedRisk updated today. Looks like a promising recovery!

meetyaks says

robertoaribas says

Mortgage applications rising is a sure sign that housing prices are about to plummet 99.99%. Are you new here or something?

Isnt mortgage app increase means more people buying homes? Can you please explain a bit

Try to look at the big picture. It's hard but try. Last time I checked something like 70% of mortgage applications are refinances. So it could easily be a jump in refinancing to beat rising rates.

meetyaks says

Isnt mortgage app increase means more people buying homes?

Your typos make it difficult to discern your meaning, but, yes, it means that more people are lying.

bob2356 says

Try to look at the big picture. It's hard but try. Last time I checked something like 70% of mortgage applications are refinances. So it could easily be a jump in refinancing to beat rising rates.

Nope, in fact refinancing is down 59% over the past 3 months.

bob2356 says

No one gives a shit about east bay

Are you one of those "SF / peninsula" snobs?

meetyaks says

any comments?

Why look at yesterday's news to see the future. How about something a bit more recent, that is a function of the spike in interest rates. July data was still from people that were locked to a rate before the spike. Sure, they will try to close. Wouldn't you if you had a locked in 3.5% and the market was now 4.5%? This data is the first that we see that hints a bit of the impact. Just wait until the next round of numbers come out. It will be horrible beyond your wildest dreams/nightmares.

http://www.fool.com/investing/general/2013/08/14/mortgage-applications-fall-by-47.aspx

RentingForHalfTheCost says

http://confoundedinterest.wordpress.com/2013/08/14/mortgage-purchase-applications-plunge-5-39-while-average-mortgage-size-declines/

Can I lock-in to a rate even if I havent picked a house? I was told by someone that I cannot do that. Is that true?

bob2356 says

I'm still waiting for someone to explain how refinancing apps can be down, purchase apps can be down, yet apps in total are up.

I had been wondering about that unsourced headline too, and eventually gave up waiting for someone to explain it. Apparently, it refers to mortgage applications for new units, not existing units:

"Mortgage applications for new homes climbed 14% in July, according to the Builder Application Survey released by the MBA on Friday."

That distinction got omitted from the headline, and then the OP didn't even provide the source.

Also, mortgage applications are not mortgages, i.e. prospective borrowers might be filing more applications but not necessarily signing more mortgages.

And, the term "refinance" might not include second or third mortgages. In new houses, there might be a first mortgage for land and construction, then a second mortgage following completion if there's equity to borrow against. Rising rates might explain a drop in refinancing and an increase in second mortgages, just as falling rates would explain an increase in refinancing and a decrease in second mortgages.

It's time that overpriced housing fall 99.99%.
0.01% of present listing price is what buyers should be offering today. Offer to be accepted in one hour or offer to be reduced.

HEY YOU says

It's time that overpriced housing fall 99.99%.

0.01% of present listing price is what buyers should be offering today. Offer to be accepted in one hour or offer to be reduced.

If the seller covers the first 10 years of maintenance then I might be a buyer into this type of market. ;)