Posted on 05/01/2013 9:34:58 AM PDT by whitedog57
While we await The Fed’s FOMC rate decision at 2pm (as if it will change!), we had some good news and bad news today.
First, the good news. The Mortgage Bankers Association (MBA) released their weekly mortgage applications indices this morning. Applications rose 1.8% from the previous week.
Unfortunately, mortgage purchase applications fell 1.37% while refinancing applications rose 2.80% and is at its highest level since the week ending January 18, 2013.
The HARP share of refinance applications increased from 32 percent last week to 34 percent this week, the highest level since MBA began tracking HARP applications in February 2012. And since Mel Watt from North Carolina was just tapped by President Obama to replace Ed DeMarco as FHFA Director, we could see a dramatic change in mortgage refinancings (as in principal reductions).
The ten year Treasury yield dropped today to 1.6273% with mortgage rates soon to fall as well.
On the negative side, ADP employment change increased by only 119k (analysts were expecting 150k).
And ISM manufacturing fell from 51.3 to 50.5. This is in keeping with the Chicago and Milwaukee negative prints from earlier this week.
Finally, construction spending fell 1.7% in March.
Mel Watt
Interesting...a USA Today story this morning was about lumber mills re-opening.
However, I do see the website has this same info as the OP on overall construction spending but it does show residential construction as a bright spot.
The blond bimbo on Bloomberg this morning was crowing about the rising home prices. She failed to mention that these homes are being bought by foreign investors for cash, and homeownership in the U.S. has fallen to 1995 levels.
They have to keep polishing the poop that is the Obama “recovery” at Bloomberg and CNBC.
“She failed to mention that these homes are being bought by foreign investors “
In my market; the issue is finding something to buy. Prices are going up.
I do mortgage lending; and have 3 appraisal surprises in the past week; to the good side.
I don’t see (or hear of any cash buyers) any foreign buyers; just families who want to own a home.
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