Mortgage applications climb 0.6%; rising rates don't scare buyers LINK
Plenty of things are scaring potential homebuyers today, but apparently interest rates aren't one of them.
Mortgage application volume eked out a 0.6 percent gain on a seasonally adjusted basis last week from the previous week, according to the Mortgage Bankers Association. The tally includes an adjustment for the Columbus Day holiday. Applications are now 18.5 percent higher than a year ago.
Mortgage applications to purchase a home increased 3 percent from the previous week, seasonally adjusted and are now 13 percent higher than the same week one year ago. While home sales have been slowing since August, there are more mortgage-dependent buyers in the market today from a year ago. That may account for the increase in applications. Investors, who largely use cash, have been slowing their purchases this year overall. Homebuying has slowed as price gains accelerate and consumer confidence in housing wanes.
A monthly survey of homebuilder sentiment dropped in October, with builders reporting less buyer traffic and fewer sales. Expectations for future sales, however, are still rising, as the supply of homes for sale continues to shrink amid rising buyer demand. Refinance applications, which are more interest rate-sensitive, fell 1 percent from the previous week, seasonally adjusted, but are still up 22.4 percent from a year ago, when rates were slightly higher.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since June, to 3.73 percent, from 3.68 percent, with points increasing to 0.36 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio loans.
"Refinance applications dropped to the lowest level since the week of the Brexit vote, as mortgage rates reached their highest level since then," said Michael Fratantoni, chief economist for the MBA.
Mortgage rates did begin to move slightly lower at the beginning of this week, but experts are not convinced the recent rise is over, given how anxious bond markets appear to be. With political uncertainty ahead domestically, and international markets still in flux, volatility is to be expected.
"It's tempting to conclude that the recent trend toward higher rates is over," wrote Matthew Graham, chief operating officer of Mortgage News Daily. "But that would be a premature conclusion until we see how markets react to Thursday's announcement from the European Central Bank. Bottom line, the past few days have been helpful, but everything could still change."
The refinance share of mortgage activity decreased to 61.5 percent of total applications from 62.4 percent the previous week. The adjustable-rate mortgage share of activity remained unchanged at 4.1 percent of total applications.
Take risks - if you win you will become wealthy, if you lose you will become wise
Another feel good get pumped on property story Pete that isn't as it appears. Have you looked into derivatives/swaps lately I.e. Volumes/size? It is clear the US banks have returned to pre 2006 lending standards and although property isn't booming they are slowly but surely trying to get it to pick up speed. I watched a CNN report a year or so back where a hedge fund CEO was selling the idea that the US over cooked housing leading up to 2007 and with the benefit of hindsight they could use the same methodology (credit swaps and cheap easy lending) to lift the country back into prosperity leveraged off property. That the country could have a second go at it but be restrained this time round.
There is a belief in many banking and fund circles that this can be achieved, it completely ignores human flaws such as greed but people always want more money so I'm sure they could sell the idea.
If consumption, credit apps and derivative figures for q1 and q2 are anything to go by they already have.
Another feel good get pumped on property story Pete that isn't as it appears. Have you looked into derivatives/swaps lately I.e. Volumes/size? It is clear the US banks have returned to pre 2006 lending standards and although property isn't booming they are slowly but surely trying to get it to pick up speed. I watched a CNN report a year or so back where a hedge fund CEO was selling the idea that the US over cooked housing leading up to 2007 and with the benefit of hindsight they could use the same methodology (credit swaps and cheap easy lending) to lift the country back into prosperity leveraged off property. That the country could have a second go at it but be restrained this time round.
There is a belief in many banking and fund circles that this can be achieved, it completely ignores human flaws such as greed but people always want more money so I'm sure they could sell the idea.
If consumption, credit apps and derivative figures for q1 and q2 are anything to go by they already have.
Why is it clear that US banks have returned to pre 2006 lending standards?
You have zero knowledge of the standard of lending in the USA. That's just your gut feeling, it's what you want to believe, and your gut feeling hasn't done too well over the last decade has it.
Take risks - if you win you will become wealthy, if you lose you will become wise
just for the record Chris I contacted a commentator and broker in the USA - he had this to say when I asked him about how lending standards had changed.
Quote:
No more stated income No more 80/20 loans stated income No more option arms or interest only loans via stated income
just for the record Chris I contacted a commentator and broker in the USA - he had this to say when I asked him about how lending standards had changed.
Insight from a 12 yr old broker, ok Pete you got me ??
WTF?
Sure Chris, what would someone in the USA involved in lending know about lending quality in the USA, compared to your deluded completely uninformed rants, what was I thinking.
Take risks - if you win you will become wealthy, if you lose you will become wise
Sure Chris, what would someone in the USA involved in lending know about lending quality in the USA, compared to your deluded completely uninformed rants, what was I thinking.
F*&k you. That's my name. You know why, mister? You drove a Hyundai to get here. I drove an eighty-thousand dollar BMW. THAT'S my name. And your name is you're wanting. You can't play in the man's game, you can't close them - go home and tell your wife your troubles. Because only one thing counts in this life: Get them to sign on the line which is dotted. You hear me, you f*&king traditional meat dishs? A-B-C. A-Always, B-Be, C-Closing. Always be closing. ALWAYS BE CLOSING.
F*&k you. That's my name. You know why, mister? You drove a Hyundai to get here. I drove an eighty-thousand dollar BMW. THAT'S my name. And your name is you're wanting. You can't play in the man's game, you can't close them - go home and tell your wife your troubles. Because only one thing counts in this life: Get them to sign on the line which is dotted. You hear me, you f*&king traditional meat dishs? A-B-C. A-Always, B-Be, C-Closing. Always be closing. ALWAYS BE CLOSING.
-- Blake, Mitch and Murray (Glengarry Glenn Ross)
So you take all your advice from movies?
Take risks - if you win you will become wealthy, if you lose you will become wise
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