Bidenville Mortgage Depot! US Mortgage Purchase Demand Down -27% Since Last Year, Refi Demand Down -42% (Bidenflation, Stalling Economy = Bad News For Mortgage Market)

Welcome to the Bidenville Mortgage Depot! Where Bidenflation (caused by idiotic energy policies, crazy Fed money printing and insane Federal spending) has caused The Fed to raise rates crushing the US mortgage market.

Mortgage applications decreased 1.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 2, 2023. This week’s results include an adjustment for the Memorial Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 12 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous week and was 42 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 13 percent compared with the previous week and was 27 percent lower than the same week one year ago.

The East Palestine Ohio train wreck is symbolic of Biden’s economic programs. I don’t think the Vacationer in Chief (40% of time as President has been on vacation) has been there yet.

Many people are locked into low interest rate mortgages and the houses that those mortgages are on.

The problem of overpriced housing has become very widespread.

The two factors of interest rate lock and overpricing are the key reasons for reduced mortgage origination.

I read that Newton, Massachusetts must allow 8,000 more housing units.

Why pay $250,000 for a condo when one might be able to buy an “affordably priced” condo at say $120,000 in five years?

Bear in mind that it is not practical to build 8,000 detached single family houses in Newton, but that 8,000 apartments/condos could be. Condo prices will be very hard hit directly, but detached single family housing prices will be impacted only indirectly by neighborhood deterioration, increased traffic, and lower per square foot apartment rent & condo pricing.

People owning condos in mandated density increase areas should try to get out of their condos (unless their mortgage is at a low interest rate). If they can’t buy a detached single family house in a nearby area (and pay the likely to increase property taxes on it), they should move to a more housing investment reliable area.

In mandated density increase areas, prospective buyers should probably not offer more than the 2017 pricing of property. In making an offer in such an area, include a letter discussing mandated density increases and their likely negative long-term impact on housing prices. Homeowners should seek to collect such letters and use them to demand reasonable property tax assessments.

If you are thinking of moving to Florida bear in mind that homeowners, wind storm and flood insurance is very expensive.

And Florida may get a state income tax. State income taxation was sold in New Jersey and Connecticut as a way of lowering property tax.

Ever more is the operating principle of the Uniparty politician.

There are in many newer Florida subdivisions also neighborhood development district taxes, which can be substantial.

Instead of developers paying the cost of neighborhood infrastructure and including that cost in the house price, developers set their housing prices just as high but arrange for home buyers to pay for neighborhood infrastructure by post-purchase taxation.

“Oh, you can get stucco.”

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