View Full Version : Mortgage Applications Rise
red states rule
02-07-2008, 07:44 AM
With falling interest rates, folks are either buying their first home, or doing a refinance
This may bust the bubble of the "housing meltdown"
I am now taking refi apps, and the phones are constantly backed up with calls
Mortgage applications rise with refinance activity
Posted Jan 30th 2008 11:52AM by Joseph Lazzaro
Filed under: Economic data, Housing
Mortgage application volume increased 7.5% for the week ended Jan. 25, 2008, the Mortgage Bankers Association's announced Wednesday.
The MBA's application index rose to 1,054.9 from 981.5 the previous week. The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.
Refinance volume pushed the index higher. Refinance application volume increased 22.1%, while purchase volume tumbled 17.7%. Refinance applications accounted for 73% of total applications.
An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 1,054.9 means mortgage application activity is 10.549 times higher than it was when the MBA began tracking the data.
The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week.
for the complete article
http://www.bloggingstocks.com/2008/01/30/mortgage-applications-rise-with-refinance-activity/
5stringJeff
02-08-2008, 10:05 PM
Housing inventory is expected to peak later this year, and new housing starts are down to 1993 levels, IIRC.
I just hope prices bottom out this summer.
red states rule
02-08-2008, 10:34 PM
Housing inventory is expected to peak later this year, and new housing starts are down to 1993 levels, IIRC.
I just hope prices bottom out this summer.
Where I work, the phones for requests for re-fi's are ringing off the hook. It was (and is) so bad, they trained about 100 of us to take only re-fi requsts sine the re-fi dept can't keep up
I now take about 35 to 40 apps per day - I close on about 4 to 5 per day during the same call.
Right now, folks are taking advantage of the rates, lowering their payments, dumping their ARM's, and now people who were not able to get their first home, may be able to
bullypulpit
02-09-2008, 08:00 AM
My wife is closing 25 to 30 refis a month, especially since the interest rate drop, but refis don't generate the same level of economic activity as purchases of new or existing homes.
The assessed valuations on many homes in central Ohio actually dropped slightly this year as reflected in a slight decrease in the property tax arrears she sends out as part of the closings. Also many of these refis are cash out deals to pay down credit card debt, in some cases $50,000 or more, but the average is $30,000. We refinanced to a 15 year fixed at 6% in June, but we refinanced for an amount lower than the value of our first mortgage and we paid points to get the 6%. We were able to do this because we had no credit card debt, no debt all aside from the mortgage. As home prices continue to slump, fewer and fewer people will be able to continue using their homes as ATM's as their equity evaporates, the economy will continue to slow down.
You can find more on declining home prices <a href=http://www.forbes.com/2007/10/05/housing-weak-property-forbeslife-cx_mw_1005realestate.html>HERE</a>.
Sorry to burst your bubble Red...
<blockquote>it's considerably more likely that the storm is still gathering force. On Jan. 30 the government said annual economic growth slowed to just 0.6% in the fourth quarter as home construction plunged at a 24% annual rate. The Standard & Poor's/Case-Shiller 20-city home price index fell 7.7% in November from the year before, the biggest decline since the index was created in 2000.
And that could be just the start. Brace yourself: Home prices could sink an additional 25% over the next two or three years, returning values to their 2000 levels in inflation-adjusted terms. That's even with the Federal Reserve's half-percentage-point rate cut on Jan. 30
While a 25% decline is unprecedented in modern times, some economists are beginning to talk about it. "We now see potential for another 25% to 30% downside over the next two years," says David A. Rosenberg, North American economist for Merrill Lynch (MER), who until recently had expected a much smaller slide. - <a href=>Business Week</a></blockquote>
red states rule
02-09-2008, 08:04 AM
Oh, they do not help the economy. If you lower a H/O's payment, they have more money in their pocket
With lower rates, you will have more people eligible to buy a home - which means more homes sell
You have people who can trade up - which means more homes sell
I know you libs need bad news to help you in Novemeber - and if the news goes against you - you will make it up
A coworker of mine works in the print room and he told me they are printing more closing docs in a day then they used to print in a week before the rate cuts
5stringJeff
02-09-2008, 12:13 PM
Hey RSR, is there a website where you can get home sales data by metro area? I'm interested in researching a few different markets.
April15
02-09-2008, 02:26 PM
The refi and new purchases are going fair as they are not jumbo loans. Jumbos are where the problem exists. Pittsburg Pen has homes for 80 thousand. California has nothing under 600 or so and the majority are in the millions. For what I can't figure out.
red states rule
02-09-2008, 05:29 PM
Hey RSR, is there a website where you can get home sales data by metro area? I'm interested in researching a few different markets.
Not that I am aware of. I tried a goggle search and pulled up some sites for selected cities.
red states rule
02-09-2008, 05:30 PM
The refi and new purchases are going fair as they are not jumbo loans. Jumbos are where the problem exists. Pittsburg Pen has homes for 80 thousand. California has nothing under 600 or so and the majority are in the millions. For what I can't figure out.
and the fact, some refi's are being done with no closing costs is a huge benefit. Itr makes is so much easier for folks to save money
manu1959
02-09-2008, 05:44 PM
funny thing.....i design housing for a living......
most of my clients symbols can be found on the nyse board....
sure some are hunkering down
some are taking huge write offs to offset massive profits over the past five years
many are buying land and entitleing more projects
many are business as usual
not sure what economy you all live in but the one describe in my recent bofa hosuing market analysis seems to think we are climbing out.....
great time to buy a home or refinance in the next few months....
red states rule
02-09-2008, 05:46 PM
funny thing.....i design housing for a living......
most of my clients symbols can be found on the nyse board....
sure some are hunkering down
some are taking huge write offs to offset massive profits over the past five years
many are buying land and entitleing more projects
many are business as usual
not sure what economy you all live in but the one describe in my recent bofa hosuing market analysis seems to think we are climbing out.....
great time to buy a home or refinance in the next few months....
Alot of people are thinking about buying or refinancing. Alot of OT is available where I work
If this is what libs call a bad economy - please give me more
manu1959
02-09-2008, 05:52 PM
Alot of people are thinking about buying or refinancing. Alot of OT is available where I work
If this is what libs call a bad economy - please give me more
well to be fair the economy is a bit jumpy......but i think it has more to do with the constant "bad news" drum beating of the media ..... i do know my apartment guys can't build em fast enough.....
and the fact, some refi's are being done with no closing costs is a huge benefit. Itr makes is so much easier for folks to save money
Thats the least they could do seeing as how the mortgage industry is the ones who got us into this mess by handing out shoddy loans.
red states rule
02-09-2008, 05:57 PM
Thats the least they could do seeing as how the mortgage industry is the ones who got us into this mess by handing out shoddy loans.
Yea OCA, we held a gun to their heads and made them sign the morgtage contract
red states rule
02-09-2008, 05:58 PM
well to be fair the economy is a bit jumpy......but i think it has more to do with the constant "bad news" drum beating of the media ..... i do know my apartment guys can't build em fast enough.....
Like how the liberal media will turn on McCain - the economy will make a sudden comeback if a Dem is elected President
The liberal media will be singing the praises of the economy on 1.11.2009
Yea OCA, we held a gun to their heads and made them sign the morgtage contract
Nah, you just worked the loans knowing that the people you were handing them out to were desperate and would sign anything in order to get their first home but knowing they would be able to make their payments......but as long as you guys got paid it was all good.
In short you guys were vultures.
April15
02-09-2008, 06:04 PM
Alot of people are thinking about buying or refinancing. Alot of OT is available where I work
If this is what libs call a bad economy - please give me more
I don't know where you reside but be glad you do have work. Here In San Francisco bay area work is pretty much at a stop.
manu1959
02-09-2008, 06:05 PM
i have a short term sub prime 5 year fixed rate loan.....have had several of them ... they work great .... getting ready for another one.....
anyone know how many of these loans work out just fine.....how about the precentage that were speculators .... and got caught ....
red states rule
02-09-2008, 06:06 PM
Nah, you just worked the loans knowing that the people you were handing them out to were desperate and would sign anything in order to get their first home but knowing they would be able to make their payments......but as long as you guys got paid it was all good.
In short you guys were vultures.
Yea, the folks who said they could afford the home are just innocent bystanders
Considering only about 5% of people are late with their house payments - the mortgage industry was melting down
red states rule
02-09-2008, 06:07 PM
i have a short term sub prime 5 year fixed rate loan.....have had several of them ... they work great .... getting ready for another one.....
anyone know how many of these loans work out just fine.....how about the precentage that were speculators .... and got caught ....
Now is the time to dump they ARM - if you plan on keeping the home or living there past the time the rate will adjust
manu1959
02-09-2008, 06:07 PM
I don't know where you reside but be glad you do have work. Here In San Francisco bay area work is pretty much at a stop.
bullshit....there are at least half a dozen high rise housing projects under construction in sf .... just finished two high end restaurants on the water .... i am building a city in rohnert park and have four buildings under construction in the south bay .....
manu1959
02-09-2008, 06:09 PM
Now is the time to dump they ARM - if you plan on keeping the home or living there past the time the rate will adjust
no they are 5 year fixed then the arm kicks in on year five....friend is a mortgage broker....we refi every 3 to 5 years....getting ready to flip the loan again this summer...
red states rule
02-09-2008, 06:11 PM
no they are 5 year fixed then the arm kicks in on year five....friend is a mortgage broker....we refi every 3 to 5 years....getting ready to flip the loan again this summer...
Unless things change, you should be able to refi with no closing costs. I take about 35 apps a day for such a refi option
Yea, the folks who said they could afford the home are just innocent bystanders
Considering only about 5% of people are late with their house payments - the mortgage industry was melting down
New home starts are at a 20 year low along with existing home sales, foreclosures are rampant.
I don't know what its like in Oz where you live but all one has to do here in America is drive around to see that what I said is true.
Also the economy was better under Clinton than under Bush.
red states rule
02-09-2008, 06:17 PM
New home starts are at a 20 year low along with existing home sales, foreclosures are rampant.
I don't know what its like in Oz where you live but all one has to do here in America is drive around to see that what I said is true.
Also the economy was better under Clinton than under Bush.
Move out of the Twilight Zone and get back into the real world
manu1959
02-09-2008, 06:18 PM
Unless things change, you should be able to refi with no closing costs. I take about 35 apps a day for such a refi option
yep the last couple of times have been no closing costs and great rates....we shall see if my luck holds...
Yea, the folks who said they could afford the home are just innocent bystanders
You knew they would not be able to afford and failed to advise them of that.......vulture.
You knew that rates were not going to stay at the record lows and still advised them to take the ARM........vulture.
red states rule
02-09-2008, 06:20 PM
yep the last couple of times have been no closing costs and great rates....we shall see if my luck holds...
If it does not -shoot me a PM and I will give you the details of what my company might be able to do for you
Move out of the Twilight Zone and get back into the real world
Oh shit! Catching RSR fudging it again......these are from Bush's 1st 4 years.
http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=107&subsecID=295&contentID=252964
manu1959
02-09-2008, 06:24 PM
If it does not -shoot me a PM and I will give you the details of what my company might be able to do for you
thank you....i hope i don't have to take you up on that offer :laugh2:
red states rule
02-09-2008, 06:24 PM
Oh shit! Catching RSR fudging it again......these are from Bush's 1st 4 years.
http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=107&subsecID=295&contentID=252964
the liiberal policy institute? Why not use the Daily Kos or Dem Underground as a source?
red states rule
02-09-2008, 06:26 PM
thank you....i hope i don't have to take you up on that offer :laugh2:
We may have your mortgage already :laugh2:
the liiberal policy institute? Why not use the Daily Kos or Dem Underground as a source?
Do you dispute the stats? I mean for a guy who uses newsmax you think you would have left that alone.
Would the OBM be good enough for you? lol
Here is more and please not the source list at the bottom...unless your paranoid mind thinks the whole government is against Bush.
http://jec.senate.gov/Documents/Reports/BushIsNoClinton14mar2007.pdf
manu1959
02-09-2008, 06:38 PM
You knew they would not be able to afford and failed to advise them of that.......vulture.
You knew that rates were not going to stay at the record lows and still advised them to take the ARM........vulture.
mortgae lenders do not give financial advice nor do they give market advice.....
it is up to the borrower to obtain that advice from qualifed people .....
when you buy a care do they warn you gas prices will go up....not to drink and drive....to obey traffic laws ....to learn to drive....
mortgae lenders do not give financial advice nor do they give market advice.....
it is up to the borrower to obtain that advice from qualifed people .....
when you buy a care do they warn you gas prices will go up....not to drink and drive....to obey traffic laws ....to learn to drive....
Bullshit, mine has advised me on several occasions. But your post just proves more of my point......mortgage lenders knew they were putting these people at risk and by proxy the economy but instead of saying something they saw only profits.
April15
02-09-2008, 08:50 PM
bullshit....there are at least half a dozen high rise housing projects under construction in sf .... just finished two high end restaurants on the water .... i am building a city in rohnert park and have four buildings under construction in the south bay .....Well how about some adresses so I can apply?
manu1959
02-09-2008, 08:53 PM
Well how about some adresses so I can apply?
what is your trade.....and which local do you belong to....
Bullshit, mine has advised me on several occasions. But your post just proves more of my point......mortgage lenders knew they were putting these people at risk and by proxy the economy but instead of saying something they saw only profits.
so its now the someone else's responsibility to advise us when to take a loan?
red states rule
02-10-2008, 06:53 AM
so its now the someone else's responsibility to advise us when to take a loan?
What is next then? Disclaimers when you buy a Big Mac? A counseling session when you get a credit card?
April15
02-10-2008, 01:58 PM
what is your trade.....and which local do you belong to....Concrete contractor local 500, covers bay area now.
manu1959
02-10-2008, 02:13 PM
Concrete contractor local 500, covers bay area now.
dude you should apply to webcor concrete....or their spin off company.....
webcor concrete has five buildings under construction in downtown sf....
or there is rjs concrete out of hayward.....
April15
02-10-2008, 06:11 PM
dude you should apply to webcor concrete....or their spin off company.....
webcor concrete has five buildings under construction in downtown sf....
or there is rjs concrete out of hayward.....
Totally forgot about webcor! Thanks!
manu1959
02-10-2008, 09:01 PM
Totally forgot about webcor! Thanks!
good luck......in my opinion they are the best concrete company period....
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