Posted on 04/19/2023 4:43:06 AM PDT by Kaiser8408a
It’s only mid April and mortgage demand should be approaching it’s yearly high. But under Biden and The Fed, mortgage demand seems to have peaked earlier than normal. It’s already late in mortgage cycle.
Mortgage applications decreased 8.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 14, 2023.
The Market Composite Index, a measure of mortgage loan application volume, decreased 8.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 8 percent compared with the previous week. The Refinance Index decreased 6 percent from the previous week and was 56 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 10 percent from one week earlier. The unadjusted Purchase Index decreased 9 percent compared with the previous week and was 36 percent lower than the same week one year ago.
Here are the numbers. And lousy they are.
Give me an F. Give me an E. Give me a D. What’s that spell? FED!
Jerome, are you kidding?
(Excerpt) Read more at confoundedinterest.net ...
Thanks,”Big Guy”...you’ve lowered my net worth....substantially...because I,like many middle class Americans,see the equity I have in my home as a big part of my net worth. And I know that my house is worth *much* less now than it was 2 years ago.
There is a point in pricing where even the wealthiest businesses and individual capitalists withhold new purchases.
Have we reached that point?
I don’t have an answer, I’m not an oracle with a crystal ball, so “time will tell.”
“..Thanks,”Big Guy”...you’ve lowered my net worth....”
Yep...millions of us in the so-called “middle class” are in that same boat.
What these POSs can’t steal thru “legalized theft” (taxes), they outright steal via of deliberate inflation.
Despising these bassturds is an understatement.
The rate quoted went from 6.30% to 6.43%. The 2.06% increase was not a 206 basis point change, but only 13. Talking about a percentage change of a number that itself is a percentage is always confusing.
This is probably not a good thing. In fact, we may look back on this and recognize it as one of the most destructive influences on our national economy.
And I know that my house is worth *much* less now than it was 2 years ago.
Did you buy it two years ago? Are you looking to sell it now? If not, then does it really matter?
Not all markets are the same...
My home has increased substantially in the last three years (Mrs. BBB333 is a RE Broker/Owner).
Our market is still pretty hot due to few properties on the market.
During a conversation with a fellow Sailing Club member who works in the mortgage industry, he mentioned that he anticipates a decrease in mortgage rates in May, which could potentially lead to increased demand. However, I am not aware of any historical trends indicating a decrease in interest rates during that time of year.
I, like many middle class Americans,see the equity I have in my home as a big part of my net worth.
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It means they have an unique way of looking at “wealth.”
A house is a great asset but you have to sell it to profit.
Then you have to buy back into a high market, pay rent in a high market, end up homeless, or find something cheaper.(Good luck on cheaper)
Daily YoY !
Today’s rates are chicken feed. When it gets to 13% and more like back in the 90s, we might have something to get excited about.
These reports are focusing on the wrong end. It’s the price of homes that’s out of control. The housing market has continued to be on a race to the moon. A friend’s little dinky 1960s house, which he bought 15 years ago for about $75k sold recently for $1.5M. Sure, great profit but home prices are out of control.
Yes Bidenflation has turned into stagnation two more long years to go.
I find no one celebrates his/her home equity gains when quarterly property taxes come due...
I work in the mortgage industry as a profession, from the lender’s side of things: when it comes to assets that depreciate by their very nature (because you have to spend money to keep stuff like your home and your vehicle from breaking down), the majority view of these assets as a means of accessing liquidity is fundamentally flawed.
After all, you have to live somewhere.
I’ve always told anyone who would listen that your home should never be seen as an “investment” at all — unless you run a business out of it.
Would you ever buy $400,000 worth of Exxon/Mobil or Microsoft stock under these conditions?
1. You borrow money (maybe 80% of the purchase price) to buy it.
2. It costs you thousands of dollars every year in taxes.
3. It costs you hundreds of dollars (or more) every year to insure it.
4. You have to "invest" more money in it over time just to maintain it -- even though your ownership stake in the company doesn't change.
5. It will never pay a dividend for as long as you own it.
6. You'll probably end up paying a commission of 5% to sell it.
7. It is a highly illiquid asset that may take you weeks -- or months -- to sell in the future.
When you look at a home the same way you'd look at any other investment opportunity, you get a clearer picture of how bad an investment it really is.
You can’t live or sleep in your stock/bond portfolio.
“Thanks,”Big Guy”...you’ve lowered my net worth....substantially...because I,like many middle class Americans,see the equity I have in my home as a big part of my net worth. And I know that my house is worth *much* less now than it was 2 years ago.””
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I’m no fan of the current president any more than you are but your house is not worth “much” less than it was 2 years ago unless you are working hard to make it so. Or unless you stupidly paid too much for it.
Your primary residence, when/if you have it paid off, should not be more than 30% of your net worth. If it is and you are close to retirement and if you are in a high tax area, you have bigger problems than the current market value of your home. In addition, the cost per square foot you paid for your home should be in line with those of your neighborhood.
Finally, your home, in any market, is only worth what someone else is willing to pay for it at the time you are ready to sell it.
If you own your home for 10 years and the market value has increased 10% every year for 9 years and 0.0% on the 10th year your home market value has increased double from your purchase price in spite of year 10 being flat or even down a few precent.
You subtract your mortgage note balance from your home market value to get an approx amount of equity to use to calculate into your overall net worth because that is the amount you will have in your pocket once you pay your lender. That all changes of course once your mortgage is paid off, because you get to keep all of the sale price less any costs to sell. It is then you can use your full home market value in your net worth calculation.
An asset by the way is an investment that makes you money. Your primary residence makes you money only when you sell it. So it is not an asset in the sense that a rental property, commercial grade Z-mower or blue-chip stock is an asset. Those can make you money. Even a high yield savings account can make you money, not much but it does.
You are welcome.
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