Hot, Hot, Hot! Mortgage Purchase Applications UP 6% WoW, Refi Applications DOWN -3.1% WoW As Fed Keeps Massive Covid Stimulus In Place (AEI Home Price Index UP 17% YoY In May)

Confounded Interest ^ | 06/22/2022 | Anthony B. Sanders

[Browns Ultra Fan]

Although mortgage rates have been rising quite fast, The Fed’s balance sheet is only being reduced quite slowly, leading to a continuation of the hot, hot, hot housing market.

But the expectation of Fed rate hikes is causing mortgage rates to soar and borrowers are trying to get buy housing before The Fed chokes off rates.

Mortgage applications increased 4.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 17, 2022.

The seasonally adjusted Purchase Index increased 8 percent from one week earlier. The unadjusted Purchase Index increased 6 percent compared with the previous week and was 10 percent lower than the same week one year ago.

The Refinance Index decreased 3 percent from the previous week and was 77 percent lower than the same week one year ago.

The American Enterprise Institute (AEI) national home price index for May 2022 averaged 17.0%, down from 17.5% a month ago but up from 15.3% a year ago.

So, the housing market remains hot, hot, hot but not mortgage refi applications. But Powell and Company will likely choke-off purchase applications as well.

[Browns Ultra Fan]

The Fed is creating mayhem by THREATENING to withdraw stimulus, but leaving massive stimulus out there until the elections.

[tired&retired]

When Fannie & Freddy loaned out all this money in 30 year low interest mortgages, did they borrow it with long term debt, or are they stuck with short term rates?

If so, I see a major disaster with this current inflation.

[Sirius Lee]

Yup. They’re trying to delay the full impacts of Biden’s recession so that they can blame the Republican majority in the House.