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megimoo
12-03-2008, 12:02 PM
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Mortgage applications post largest gain ever

"Do You See A Recession,Where is It ? This sure doesn't Look Like One To Me !

NEW YORK – Mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.

The U.S. housing market is suffering the worst downturn since the Great Depression as a huge supply of unsold homes, tighter lending standards and record foreclosures push down home prices.

But, the latest weekly data from the Mortgage Bankers Association showed potential borrowers were lured by enticing mortgage rates, which dropped dramatically after the Federal Reserve unveiled a plan last week to buy up to $500 billion of mortgage securities backed by government-sponsored enterprises, Fannie Mae (FNM.P), Freddie Mac (FRE.P), and Ginnie Mae.

"This clearly was an early holiday gift from the Federal Reserve to mortgage holders and home shoppers," said Mike Larson, a real estate and interest rate analyst at investment firm Weiss Research in Jupiter, Florida.

"But, the MBA's data is only for submitted applications, not closed loans, so a good amount may get rejected because qualifying standards are tighter and many applicants will probably find they do not have the equity to refinance given the decline in home prices," he said.

As long as unemployment is climbing and the economy is weakening, the impact on the home purchase market should be much more muted than the refinance market, he said.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended November 28 soared a record 112.1 percent to 857.7, the highest reading since the week ended March 21 when it reached 965.9.

"Many borrowers missed an opportunity to take advantage when rates dropped sharply for a brief period when the GSEs were placed under conservatorship," Orawin Velz, Associate Vice President of Economic Forecasting, said in a statement.

http://news.yahoo.com/s/nm/20081203/bs_nm/us_usa_economy_mortgages;_ylt=AtxNkuVkkQbo103vY8_b .q6yBhIF

M21
12-03-2008, 12:26 PM
Folks investing their money in hard assets like houses?

FlaGator
12-04-2008, 08:59 AM
Folks investing their money in hard assets like houses?

I decided to take some of the equity out of my home last month by refinancing at 5.25 for 15 years and used the extra cash to pay off all my debt other than my home. My monthy out go consists of mortgage, utilities, food and a few extras. I have cancelled all but one credit car (Visa with a 7.1 interest rate) but it is paid off. My new monthy mortgage payment is now less the the previous one. I looked as what is going on now as an investment opportunity I couldn't pass up because now the majority of my income has been freed up to be invested else where.

Molon Labe
12-04-2008, 11:18 AM
"Do You See A Recession,Where is It ? This sure doesn't Look Like One To Me !

My newspapers headlines today : 500 local jobs to be cut after new year.

There is still a recession. I'll bet the main reason mortgage applications have increased is because people who were smart and frugal saved their money and are now going to get some sweet deals.

wineslob
12-04-2008, 11:56 AM
My newspapers headlines today : 500 local jobs to be cut after new year.

There is still a recession. I'll bet the main reason mortgage applications have increased is because people who were smart and frugal saved their money and are now going to get some sweet deals.

In my area it's a buyers market, like I've never seen. South of me,( Sacramento, Ca.), housing prices have dropped tremendously in the last year. Median prices that were at or near $400K are now $187K. There's going to be a house buying surge.

M21
12-04-2008, 11:57 AM
I decided to take some of the equity out of my home last month by refinancing at 5.25 for 15 years and used the extra cash to pay off all my debt other than my home. My monthy out go consists of mortgage, utilities, food and a few extras. I have cancelled all but one credit car (Visa with a 7.1 interest rate) but it is paid off. My new monthy mortgage payment is now less the the previous one. I looked as what is going on now as an investment opportunity I couldn't pass up because now the majority of my income has been freed up to be invested else where.

Good strategy. Too few people actually manage their money in a thoughtful manner.

YupItsMe
12-04-2008, 12:31 PM
In my area it's a buyers market, like I've never seen. South of me,( Sacramento, Ca.), housing prices have dropped tremendously in the last year. Median prices that were at or near $400K are now $187K. There's going to be a house buying surge.


And the Democrats are going to take credit for it. :mad:

Molon Labe
12-04-2008, 12:38 PM
And the Democrats are going to take credit for it. :mad:

Yes the stupid and ill informed will think it's the federal governments new polcies regardless of who's in. It will be the Democrats in this case.....but we know better. Problem is how do you continue to try to get the truth out that it's the government's fault for all this mess, when the media spin machine keeps telling you everythings OK?