Gov't/Fed Controlled Mortgage Market Continues To Decline (Thanks Bernanke and Obama!)

Confounded Interest ^ | 09/04/2013 | Anthony B. Sanders

[whitedog57]

As I mentioned in my Pew interview, this isn’t your mother’s housing recovery. Over stimulus by The Fed (low rate policies) and national homeownership policies encouraging lenders to expand credit backfired badly.

Want further articulation? According to the Mortgage Bankers Association (MBA) weekly mortgage application survey of lenders, mortgage applications rose 1.32% from the previous week.

mbaind090413

However, mortgage purchase applications fell 0.42% from the previous week. The MBA’s 30 year effective rate is in pink. The MBA’s 30 year effective rate decline slightly from the previous week.

mbapurch09013

On a non seasonally adjusted basis, mortgage purchase applications fell 2.72% from the previous week. You can see the rise in purchase applications since the beginning of the year UNTIL May 1st when Treasury rates began the rise.

bapnonsea090413

And mortgage purchase applications continue to remain in a box since 2010 after an incredible run-up during the 1990s until 2005.

mbaplt

So, oops, they did it again. Mortgage purchase applications are declining while house prices soars. The CoreLogic HPI is the green line.

loanhpmbap

Mortgage refinancing applications are ROSE for the first time in a while, rising 2.38% from the previous week. But the trend will remain on a downward trajectory as long as Treasury rates rise.

mbarefi090413

On an unrelated note, gold, silver, oil and virtually even commodity is done this morning.

comod090413

[whitedog57]

The gov't and Fed DENY they had anything to do with the financial crisis. Actually, they had EVERYTHING to do with it.