Jay The Revelator! Mortgage Purchase Applications Plunge 12% WoW As Mortgage Rates Skyrocket (Purchase Apps Down 15% Versus Same Week A Year Ago)

Confounded Interest ^ | 05/18/2022 | Anthony B. Sanders

[Browns Ultra Fan]

Jay the Revelator! He revealed that The Fed will not hesitate to keep raising rates until inflation comes down. Which means that mortgage rates may be rising.

Mortgage applications decreased 11.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 13, 2022.

The Refinance Index decreased 10 percent from the previous week and was 76 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 12 percent from one week earlier. The unadjusted Purchase Index decreased 12 percent compared with the previous week and was 15 percent lower than the same week one year ago.

Of course, The Fed has about as much chance of slowing down energy and food prices as I do of becoming King of the United States. But Jay the Revelator may be able to cool housing demand with rising mortgage rates.

[Browns Ultra Fan]

Powell knows that The Fed can only cool mortgage rates, not Biden-induced inflation and bottlenecks.

[dsrtsage]

At least there are no mean tweets

[frogjerk]

Stop printing money to cover deficits. Of course that will not happen so get ready for the roller coaster inflation climb followed by the 90 degree drop in the economy....WEEEEEEEE!

[AnglePark]

We’re mortgage brokers, and we’re deader than dead. The last time we saw it this slow was right after Covid hit, and we were dead for a month or so, but it took off like a rocket after that.

This time it looks like it’ll be around for a while, and we’ll be lucky if we’re only down about 30% of our normal loan goal for the quarter. After that, who knows. We’re smart with out money, though — and keep our debt to a bare minimum — so we can hold out for quite a while.

[Fido969]

People refi when rates go down, not up.

[NicoDon]

14 months ago, I refinanced into a 3% 30 year that I have been paying triple payments on ever since. Anyone got a lower 30 year rate?

My bank has been spamming me with refinance offers. What a joke.

[AnglePark]

Thanks, Captain Obvious. And just for the record mortgage brokers do more than just refinances, with purchases being the vast majority of our business. Besides, the article was specifically about purchase apps — not sure how someone so astute could have missed that.

[Gay State Conservative]

The actual market value of my home represents a substantial percentage of my net worth,as is true of many middle class Americans.This huge rise in interest rates means that that market value has dropped.

Thanks,Brandon...for an 8% inflation rate *and* for my home being worth less.

[Georgia Girl 2]

I feel your pain. I was a broker for 17 years. I always lived below my means to get through the down cycles.