Posted on 01/04/2023 8:53:40 AM PST by Kaiser8408a
Mortgage applications generally nosedive in the last two weeks of the year (seasonality effect), but Federal Reserce monetary tightening to fight inflation is making the last two weeks worse than usual.
Mortgage applications decreased 13.2 percent from two weeks earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 30, 2022. The results include adjustments to account for the holidays. It marked the lowest mortgage applications since 1996.
The Market Composite Index, a measure of mortgage loan application volume, decreased 13.2 percent on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 39.4 percent compared with the two weeks ago. The holiday adjusted Refinance Index decreased 16.3 percent from the two weeks ago (2WoW) and was 87 percent lower than the same week one year ago (YoY). The seasonally adjusted Purchase Index decreased 12.2 percent from two weeks earlier. The unadjusted Purchase Index decreased 38.5 percent compared with the two weeks ago and was 42 percent lower than the same week one year ago.
Notice that purchase applications are declining with slowing M2 Money growth showing the impact of The Fed trying to remove the punchbowl.
The week-over-week (or WoW) numbers are pretty bad.
(Excerpt) Read more at confoundedinterest.net ...
I was one of those....was going to refinance to cash out some equity to purchase some property...but couldn’t justify it based on the rates and with the uncertainty on where rates would go.
I’m investing in plastics and ball bearings nowadays...
If new loans stay tanked May-June we got a problem.
The purchase applications are declining because there was a major surge in home sales over the previous 2+ years.
There are hardly any homes on the market in my area. In 2020-21, everyone who was considering a home sale in the next 5+ years put their homes on the market so they could sell it at an inflated price.
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