Mortgage activity surged last week, as interest rates dropped sharply. The MBA refi index surged 31.9%, its biggest increase since March 2004, to its highest level since July 2005. Moreover, a reporting error during the shortened Thanksgiving week by one of the larger companies surveyed caused much of that week’s decline to be revised away. The purchase index also posted an abnormally large increase in the latest week, jumping 15.2%, the most since January, to its highest level in three months. But purchase applications in the prior week were downwardly revised to a loss of 4.9% from a gain of 6.1%.
Separately, according to Freddie Mac and confirming statistics from the OHFEO, home values fell in Q3. The Conventional Mortgage Home Price Index dropped at a 1.3% annual rate in Q3, down from -0.5% in Q2 and the largest decline in 25 years. On a y/y basis, home price appreciation has eased to a modest 1.9%, its slowest pace since Q1 1995. Home prices are no longer outpacing inflation for the first time since 1995. Based on purchase transactions only, prices fell at a 2.2% rate in Q3, the most since Q4 1990, and eased to 1.6% above a year ago, its worst showing since Q1 1993. Prices fell in seven of the nine regions, led by the Pacific area, and in 25 states during Q3.
Rates have dropped significantly recently. It is not surprising that people are taking advantage of rates last seen in 2005 or so to save some money, lock in a fixed rate, etc. These are prudent measures.
Rates have dropped significantly recently. It is not surprising that people are taking advantage of rates last seen in 2005 or so to save some money, lock in a fixed rate, etc. These are prudent measures.
Rates have dropped significantly recently. It is not surprising that people are taking advantage of rates last seen in 2005 or so to save some money, lock in a fixed rate, etc. These are prudent measures.
Rates have dropped significantly recently. It is not surprising that people are taking advantage of rates last seen in 2005 or so to save some money, lock in a fixed rate, etc. These are prudent measures.
Rates have dropped significantly recently. It is not surprising that people are taking advantage of rates last seen in 2005 or so to save some money, lock in a fixed rate, etc. These are prudent measures.
It doesn’t help California much, but the median home price in this country is near 200K, well within the conforming limits. That could certainly provide a lift to consumer spending.
It doesn’t help California much, but the median home price in this country is near 200K, well within the conforming limits. That could certainly provide a lift to consumer spending.
It doesn’t help California much, but the median home price in this country is near 200K, well within the conforming limits. That could certainly provide a lift to consumer spending.
It doesn’t help California much, but the median home price in this country is near 200K, well within the conforming limits. That could certainly provide a lift to consumer spending.
