Mortgage Purchase Applications Increased 6.9% In Weekly Survey (But Purchase Apps Down 42% YoY, Refi Apps Down 76% YoY As Fed Tightens Monetary Noose)

Confounded Interest ^ | 03/08/2023 | Anthony B. Sanders

[Kaiser8408a]

Mortgage applications increased 6.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 3, 2023.

The Market Composite Index, a measure of mortgage loan application volume, increased 6.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9 percent compared with the previous week. The Refinance Index increased 9 percent from the previous week and was 76 percent lower than the same week one year ago. The seasonally adjusted Purchase Index increased 7 percent from one week earlier. The unadjusted Purchase Index increased 9 percent compared with the previous week and was 42 percent lower than the same week one year ago.

Today, we saw mortgage rates climb further to 7.11% as the US Treasury yield curve (10Y-2Y) descends into Mortgage Mordor as The Fed continues to tighten.

[Kaiser8408a]

Biden, Schumer, Pelosi and The Fed create staggering inflation, now its time to pay the bill. Of course, Biden, Schumer and Pelosi take no responsibility.

[JesusIsLord]

Purchase Index increased 9 percent compared with the previous week and was 42 percent lower than the same week one year ago.

Fed tightening is slowing down the level of borrowing. Notice that although borrowing levels are down compared to a year ago, they continue to rise compared to a week ago. The brakes are on but the Fed has not put us into a full stop. Folks are pulling back but I believe there are still many buying: cars, houses, recreation vehicles etc. Hard recession or soft landing coming? - TBD.

[SaveFerris]

There will be no soft landing

2008 coming again IMHO

[JesusIsLord]

Of course, Biden, Schumer and Pelosi take no responsibility.

Like many democrats and other politicians for that matter: Biden, Schumer and Pelosi helped create the problem and if/when it is corrected, they will take credit for fixing it - never admitting that they authored the problem to begin with.

[Brian Griffin]

“Noose”

Do you think paying 4% on bank CDs is fair in the face of Congressionally caused 8% inflation?

With gold or other natural money, interest paid is real.

[Brian Griffin]

Mortgages could have two rates, the payment rate (say at 3%) and the true interest rate of say 8% (which is about the inflation rate).

The annual inflation differential (5% = 8%-3%) would be added to the principal.

[Brian Griffin]

Ordinary people holding fixed interest rate debt have been cheated badly by federal spending sprees that have caused massive inflation.

Institutions lending out money might insist on including Euro payment clauses:

The lender shall have the right to insist any payment due under this contract shall be increased by the Euro/US dollar conversion rate.