Posted on 02/09/2022 5:56:37 AM PST by Browns Ultra Fan
The Mortgage Bankers Association (MBA) released their weekly mortgage application survey this morning. Mortgage applications decreased 8.1 percent from one week earlier, for the week ending February 4, 2022.
The Refinance Index decreased 7 percent from the previous week and was 52 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 10 percent from one week earlier. The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 12 percent lower than the same week one year ago.
And mortgage refinancing applications are down 50% since the same week last week.
Here are the stats. Pretty much down across the board.
Given a slowing mortgage market, I designate The Office’s Kevin Malone as the face of the market with rising interest rates.
(Excerpt) Read more at confoundedinterest.net ...
Oh, you know Psaki puppet will have some sort of ridiculous explanation that the media will trumpet, and the public will accept. Most likely something to do with Trump’s fault.
Just as planned.................
When Covid started I refinanced from 3.875 to 3% thinking that was great. Then this past August I was able to refi again at 2% and they covered my closing costs plus an extra 2k.
Today the same deal would be almost 3%.
Maybe it is because there are much fewer homes for sale, not that there isn’t demand to buy them. In my area in Colorado, $1+ million homes are under contract withing a week.
Homes in the KC area (KS side) go the day they’re put on the market. My niece has been looking for months and she’s always outpriced. They’re going for 20-30k over asking price.
Same in Colorado. There isn’t necessarily bidding wars but homes are under contract quickly. The people that bought our house needed to sell theirs within 1 week, but we were confident they would, and they did. The supply is simply not there right now while demand stays very high.
Was that a 15 or 20 fixed?
“Maybe it is because there are much fewer homes for sale, not that there isn’t demand to buy them. In my area in Colorado, $1+ million homes are under contract withing a week.”
boulder camera said less than 2,000 residential units for sell on the front range from castle rock to fort collins, including condos ... residential real estate market is frozen on the front range because no one can buy anything if they sell ... all thanks to Dementia Joe ...
Still a lot of cash purchases in the hotter markets.
Our buyer cashed out a 401K for a large down payment and took $250k in cash from the sale of their home which they’ll use to replenish the 401K. This seems to be a common formula, too. People are making their move to be where they want to be should the SHTF is my guess.
In Phoenix, the most of the sales are cash and one day sales.
15 fixed
Good. I’d like to buy a house here in the next year to a year and a half but the market in the Charlotte area has been just ridiculous. Offers of $50K over asking get turned down. Houses that haven’t even been built yet are all already sold. The market needs to cool down a good bit before I’d be willing to jump in.
We recently purchased a house in Sarasota. We had 20% to put down and excellent credit. We lost the first six houses on which we put offers to cash buyers.
Tough to compete with that.
Higher rates will cool the market, but it will take a long time to soak up all the extra cash sloshing around that the government has spewed into the economy the last two years.
Lots of ‘cash’ sales for homes in my area of Florida - no mortgages involved.
In 2009, we tried to buy in Colorado and got beat by cash 7 times. Even back then in a ‘bad’ economy houses were going for cash. I can only imagine with $12T liquid today over 2010 that cash is abundant.
Make it top priority to pay off your mortgage note as quickly as you can and you will not care what the interest rate is.
If interest is calculated on the loan balance, principle reduction will do more for the actual cost of your loan than a 1% interest reduction.
My plan is to put excess cash into I bonds (currently 7%) and ride the inflation wave and then later use for debt repayment.
Sorry but if you have debt then you don’t actually have any real excess cash.
It may come as a surprise but it is difficult to reside in a interest paying bond but most homes have a roof and central heating system. Basically Sir, what you are doing is managing your debt.
BYW, Mrs fatboy is a school teacher but she has an accounting degree from Rutgers University, worked in public accounting and in the NJ gaming industry for many years and is a CPA. Guess who does all of the financial legwork in our home? Yeah, little old stupid me.
Every CPA I personally know and that is a few of them, they all live above their means. Of course I don’t know every CPA in the country and I don’t know you.
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