Mortgage applications increased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 3, 2017.
... The Refinance Index increased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 9 percent compared with the previous week and was 4 percent higher than the same week one year ago.
...
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) decreased to 4.35 percent from 4.39 percent, with points remaining unchanged at 0.34 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.The first graph shows the refinance index since 1990.
It would take a substantial decrease in mortgage rates to see a significant increase in refinance activity - although we might see more cash-out refis.
The second graph shows the MBA mortgage purchase index. Even with the recent increase in mortgage rates, purchase activity is still holding up.
However refinance activity has declined significantly.
Cash out re fis are evil. People don't have the discipline to deal with them.
ReplyDeleteCash out re-fininancing is a complex investment tool. It is nigh impossible to deny access to them on the basis of people being too "dumb" or uneducated. Sadly if they were illegal only the rich would have access to the equity in mortgaged properties via even more obscure mechanisms aka loopholes.
DeleteIt's ok with me if only the rich had access to them. I had nearly 30 years of observation of the non rich up close and personal and they can't handle the temptation. Also negative am mtges should be flat out forbidden. Hey have you done another exurb post?
ReplyDeleteLiz apologies. I haven't been in the shed for a couple days. Two home projects and local business. Tonight latest.
DeleteAnyone from New Orleans out there?
ReplyDeleteNew ship of fools ready to dive in again. Banksters may be smarter but people not so much. Go long bubble wrap!
ReplyDeleteTime to start tracking the U-Haul index again for people cashing out of the bubble zones.
ReplyDeleteWill the Chinese cash out?
ReplyDeletePeople cannot remember anything for more than 10 years, paticularly when it involves money they can spend on jets kis and vacations on one side and temporary profits on the other. Bank employees who ok these things should have . . 10 years in the biz and/or no commission coming until the loan is paid for 3 years, say, or paid off. Capitalism isn't working here because there is no down side punishment.
ReplyDeleteWhere would the Chinese take their profits? Probably not back to China if their goal was to get it out of there.
ReplyDeleteTrue. It's why I'm asking. Invest in biz here?
ReplyDeleteHahahahahaha.
If the Chinese can't or won't reinvest house profits when appropriate, and aren't living in the houses or renting them, I think you have a dead house situsation, turning an asset into nothing.
ReplyDelete