Posted on 06/20/2013 1:09:26 PM PDT by whitedog57
There are two factors that determine mortgage affordability. One is house price levels and the other is mortgage interest rates.
Both are rising rapidly translating into lower housing affordability.
First, here is a chart of housing prices since February 2012. Whether its the FHFA Purchase Only Index, the Case-Shiller 20, the Loan Performance HP or the NAR’s median home price index for existing home sales, they are all rising.
Second, Treasury and mortgage rates have risen around 63 basis points since May 2nd.
And Fannie Mae’s current coupon rate has risen from 2.296% on May 2nd to 3.270% as on today. That is almost a 93 basis point rise.
No matter how you cut it, housing is now less affordable than it was on May 2nd.
Of course, with mortgage purchase applications at 1995 levels, it is not the consumer driving the house price increase, but investors. But will investors stay in the hunt?
The stock market took a beating today as well.
Not to worry. Stated Income, Verified Asset (SIVA) loans are baaaacckk!!!!
I will be on C-SPAN with Robb Harleston, Saturday at … 7:45am discussing The Fed, stock, bond and mortgage markets. Someone bring me a large latte from Starbuck’s!
They’re back!
You mean yourself.
All you do is post advertisements to either your little blog or your obscure appearances at some Chicago bath house.
"This Guy" indeed.
Let's all call in and shame this self-promoting smacktard!
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