Posted on 05/31/2023 4:30:19 AM PDT by Kaiser8408a
Under Biden, the US economy is a land of confusion. Under Biden’s Reign of Error, Mortgage Purchase Demand is down -44%, Refi Demand is down -87%, and Mortgage Rates are UP 106%.
Mortgage applications (demand) decreased 3.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 26, 2023.
The Market Composite Index, a measure of mortgage loan application volume, decreased 3.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week. The Refinance Index decreased 7 percent from the previous week and was 45 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 31 percent lower than the same week one year ago.
Here is the rest of the story.
1% down payment mortgages when home prices are falling? Truly, a land of economic confusion under Country Joe.
(Excerpt) Read more at confoundedinterest.net ...
A critical mass of 44% of recently polled residents approve of his administration.
Thanks,Big Guy,for destroying the market value of my home...which represents a substantial percentage of my net worth!
With rates at approx. 7% refi doesn’t make sense unless you really need to cash out.
As for the mortgage stats, they are to be expected. This happens when interest rates are increased. That’s a valid response to inflation. However, it only works when the cause of inflation is addressed. That’s where Confounded Interest misses the mark. Inflation is caused by government spending, regulation, domestic and foreign policies encouraging unproductive behaviors, and quite honestly this nation’s last two generations that don’t have a work ethic. The latter being low productivity.
The economics are simple. Inflation is caused by too many dollars chasing too few goods. Increased productivity addresses the too few goods. Cutting government spending reduces the too many dollars. Increasing interest rates reduces the amount of borrowed dollars in the private sector for business expansion and large consumer purchases.
Quite honestly, I am slowly changing my mind about any value from interest rate cuts. They will cause unemployment, which to a certain degree reduces the amount of goods in the economy. It punishes people who are actually contributing value to the economy. The people who are the root cause of inflation won’t lose their jobs and they will continue to promote inflationary behaviors.
I’d like to see a completely different approach to inflation. Specifically, massive cuts in government spending and a majority of lazy ass, unproductive government employees forced into the private sector. Yes, fire their lazy asses so they can be productive. That will save the jobs of the people who really pay the bills.
You don't get it. Jobs equals social independence and mobility, which is 180 degrees from what the global elite is attempting to impose.
The "tell" was when they floated universal income.
You will have to pay to live anywhere except a Starbucks bathroom,Therefore you shouldn't count your home as your true net worth. its just a pile of wood and bricks that keep the sun and the rain off your bed.
people who place value on things instead of others, are some of the most shallow people i have ever met. Like HOA board members and other karens!
Your net worth is inside you, not outside.
I never understood their logic. My house is paid off. Its not making me any money
Your most valuable asset is your ability to work.
And who you know.
That's the leverage
I could flood your front yard with some handicapped and homeless people with riches that would blow your mind.
I could flood your front yard with some handicapped and homeless people with riches that would blow your mind.
7% is piddly nothing. Back in the 90s it was double that. George H. W. Bush was president at the time.
excellent post.
10.75% in 1988
Ours was 12.5% in the 90s for a 15 year. Asked if we could get lower by shortening the timeline but they had to nerve to ask for 13-something and penalties. It was easier to just wipe out our savings and pay it off that day to end the headache.
People were getting 30 year mortgages which ended up costing them double or more the original price of their homes. Back in the 50s, people had parties when they paid off their mortgages. That’s just dumb.
Why, I love parties.
Bought in August of 1988, 30year
Refinanced in 1992 @6% 15 year
Saved 242k
House now paid off
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