Skip to comments.Here Come The Fed: Home Sales Drop More Than Expected, Mortgage Purchase Applications Drop Too
Posted on 07/25/2012 8:07:56 AM PDT by whitedog57
For June, home purchases decreased to a 350,000 annual rate, down 8.4 percent from the prior month and the weakest since January, the Commerce Department reported today in Washington. The forecast was for 372,000 units, a big swing and a miss. The decline was led by a record 60 percent plunge in the Northeast.
And 350,000 units is down from the upwardly revised number of 382,000 for May.
The Mortgage Bankers Association released their weekly mortgage application indices this morning. As I mentioned to Lori Rothman on Fox Business last week, the MBA Purchase Index is an important index to watch. It dropped -3.22% last week.
Mortgage purchase applications remain in the same rut since May 2010.
So, despite record low mortgage rates, the housing market remains in purgatory.
On the sunny side, mortgage refinancing applications rose +1.83% continuing the long wave of refis that started in 2011.
If the GDP report comes out on Friday lower than 1.5% for Q2, watch for The Fed to do something like a QE3 or more Twist.
Of course, with M2 Money Velocity at its lowest point since Ike (actually LOWER than Ike), it is hard to imagine that it will do any good.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
No Democrat should ever be entrusted again to do the Right thing for our Country or our Civilization
“BofA has over a million mortgages.....”
long article with data and graphs here....:
and here: http://www.foreclosureradar.com//california-foreclosures
tnx for the links!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.