Posted on 07/06/2022 7:09:28 AM PDT by Browns Ultra Fan
Biden’s new campaign theme for the midterms: economic darkness, darkness.
Well, this is one way to get inflation under control … crash the economy. And inflation fears growing, we are seeing mortgage rates declining and mortgage applications increasing.
Mortgage applications decreased 5.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 1, 2022. This week’s results include a holiday adjustment to account for early closings the Friday before Independence Day.
The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index increased 7 percent compared with the previous week and was 17 percent lower than the same week one year ago.
The Refinance Index decreased 8 percent from the previous week and was 78 percent lower than the same week one year ago.
In May, CoreLogic’s national home price index was up 20.9% YoY. But home prices are expected to grow at a 5.6% clip over the coming year.
Today, we are seeing global sovereign debt yields declining which should help US mortgage rates decline further.
And the US Treasury yield curve (10Y-2Y) continues to invert, signaling recession.
Under Bidenflation, we will be forced to eat the daisies instead of meat.
(Excerpt) Read more at confoundedinterest.net ...
Mortgage rates are rising. Refi now if you need to, before rates go higher.
Considering how inflation is racing, mortgage rates still seem quite low, at less than 6% for a 30 year, and some offering under 5% for a 15 year fixed rate mortgage.
I recall how some of the Carter era mortgage rates were well into double digits, some approaching 18% if I recall correctly. Thank God we aren’t anywhere near that level.
Yet.
Interest rates will hit double digits after we start experiencing gas lines again.
My first mortgage rate in 1997 was 8.5% I thought 6 would be awesome.
Thirty-year mortgages were 18% in 1982. You pay less than 2.5% little down in the first 10 years. The good news is almost all your payment is deductible. The bad news is the monthly payment is over $1,500 on a $100,000 mortage. The houses were a lot cheaper.
As a 30 plus year mortgage professional I have seen the Fed raise its rates just To see the mortgage rate fall countless times. Interest rates in the 5’s is not going to destroy the housing market. ARMs are in the 4’s.
My daughter and her husband just bought a home for 1.9 mil at a rate of only 3.3%. yes, it’s adjustable, but it won’t adjust for 7 years, and they theoretically have the money in the bank to pay it off right now if they need to. It’s all about owning your own business. 😉
That’s exactly why I filled up my 250 gallon tank on my property a couple of weeks ago. Sure, I paid about $4.60 a gallon, but at least I have lots of gas. At the end of the day, that’s what really counts.
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