Posted on 03/30/2022 4:58:02 AM PDT by Browns Ultra Fan
Anticipation about Federal Reserve rate hikes over the next 12 months are seeding mortgage rates soaring and mortgage refinancing applications plummeting.
Mortgage applications decreased 6.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 25, 2022.
The Refinance Index decreased 15 percent from the previous week and was 60 percent lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 10 percent lower than the same week one year ago.
Yes, I am surprised at the rise in mortgage purchase applications with rising mortgage rates, unless, of course, people are trying to buy ahead of Fed rate increases.
While The Federal Reserve led to a scorcher in asset prices since 2008, rapid rate increases and quantitative tightening (QT) will have a chilling effect on the housing market.
(Excerpt) Read more at confoundedinterest.net ...
Slowing the economy is what is needed right now. Problem is doing it without winding up in a recession is really hard.
US GDP Set to Rise 5.6% Annually to 2025 from 2020 Pandemic-Induced Recession
Money is still very cheap. Anything under 5% is basically free money. The rate was over 5% for more than 40 years before 2009. After 2009 the rate has been below 5%.
Still not as bad as under jimmah cahtah....
In 82 I bought my first house, and managed to assume the previous owners mortgage..
the interest rate was 9.5 percent, a virtual bargain at that time....
jimmah was and is still the worst president this country has ever had, but biteme is trying hard to take over slot #1
Yes, money is too cheap and has been for at least the last nearly 15 years.
I would not even consider loaning money at rates such as we have had. There have to be better investments than that.
Rates need to be high enough to make you think more than twice about signing for a loan.
The economy has been over heated now for a long time. You can see it in all the just plain junk that has been built. Every town and city in the country is the same formulaic glitter gulch and yet, it sits on top of crumbling streets and bridges and urban blight.
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