Beat The Heat! Mortgage Purchase Applications RISE 5% From Previous Week As Homebuyers Scramble To Beat The Fed's Monetary Tightening

Confounded Interest ^ | 05/11/2022 | Anthony B. Sanders

[Browns Ultra Fan]

Yes, homebuyers are jumping into a generally slowing housing market to “beat the heat.” That is, beat The Fed’s monetary tightening.

Mortgage applications increased 2.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 6, 2022.

The seasonally adjusted Purchase Index increased 5 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 8 percent lower than the same week one year ago.

The Refinance Index decreased 2 percent from the previous week and was 72 percent lower than the same week one year ago.

Beat the Heat!! Or Beat The Fed!!

As least inflation came in slightly cooler in April at 8.3% YoY. While housing (own or rent) is rising at over 2x CPI.

[Browns Ultra Fan]

Inflation still roaring at 8.3%. Thanks Joe!!

[Tell It Right]

Better to wait a few years after the Fed destroys the housing market they propped up ... just like they did the last time around. Then you can buy a good house cheaper, albeit with a higher mortgage rate.

No worries. Pay the high mortgage rate for a while until the Fed drops rates again, after which you can refinance with a low rate. Then you'll have a win-win: a low mortgage balance combined with a low rate.

[1Old Pro]

The Refinance Index decreased 2 percent from the previous week and was 72 percent lower than the same week one year ago.

Refi's 72% lower, now that's a BIG percentage. My friend in that biz says it's true.

[Vaduz]

Biden Inflation so bad I can’t even put a down payment on a hot lunch.