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peterb.
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August 22, 2008 at 4:45 AM #259952August 22, 2008 at 9:48 AM #260011
(former)FormerSanDiegan
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
August 22, 2008 at 9:48 AM #260209(former)FormerSanDiegan
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
August 22, 2008 at 9:48 AM #260220(former)FormerSanDiegan
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
August 22, 2008 at 9:48 AM #260267(former)FormerSanDiegan
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
August 22, 2008 at 9:48 AM #260307(former)FormerSanDiegan
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
August 22, 2008 at 10:42 AM #260036peterb
ParticipantOur real estate world is all about funding, of any kind. So all sources should be considered and included to get the whole picture.
This is a classic deflationary cycle. A downward spiral that feeds itself. Seeing data that clarifies these things is important. The fact that people are not refinancing despite lower rates is an indication of credit/funding availability. As this diminishes, it puts more downward pressure on prices.I am still guessing that rates have to stay low due to lower demand. But risk is growing, so mitigation of risk will have to be installed. I am guessing that higher down payments and tougher documentation proving ability to repay will be the way this is achieved. But I dont know the business that well. Anybody have insight as to this?
August 22, 2008 at 10:42 AM #260234peterb
ParticipantOur real estate world is all about funding, of any kind. So all sources should be considered and included to get the whole picture.
This is a classic deflationary cycle. A downward spiral that feeds itself. Seeing data that clarifies these things is important. The fact that people are not refinancing despite lower rates is an indication of credit/funding availability. As this diminishes, it puts more downward pressure on prices.I am still guessing that rates have to stay low due to lower demand. But risk is growing, so mitigation of risk will have to be installed. I am guessing that higher down payments and tougher documentation proving ability to repay will be the way this is achieved. But I dont know the business that well. Anybody have insight as to this?
August 22, 2008 at 10:42 AM #260245peterb
ParticipantOur real estate world is all about funding, of any kind. So all sources should be considered and included to get the whole picture.
This is a classic deflationary cycle. A downward spiral that feeds itself. Seeing data that clarifies these things is important. The fact that people are not refinancing despite lower rates is an indication of credit/funding availability. As this diminishes, it puts more downward pressure on prices.I am still guessing that rates have to stay low due to lower demand. But risk is growing, so mitigation of risk will have to be installed. I am guessing that higher down payments and tougher documentation proving ability to repay will be the way this is achieved. But I dont know the business that well. Anybody have insight as to this?
August 22, 2008 at 10:42 AM #260293peterb
ParticipantOur real estate world is all about funding, of any kind. So all sources should be considered and included to get the whole picture.
This is a classic deflationary cycle. A downward spiral that feeds itself. Seeing data that clarifies these things is important. The fact that people are not refinancing despite lower rates is an indication of credit/funding availability. As this diminishes, it puts more downward pressure on prices.I am still guessing that rates have to stay low due to lower demand. But risk is growing, so mitigation of risk will have to be installed. I am guessing that higher down payments and tougher documentation proving ability to repay will be the way this is achieved. But I dont know the business that well. Anybody have insight as to this?
August 22, 2008 at 10:42 AM #260332peterb
ParticipantOur real estate world is all about funding, of any kind. So all sources should be considered and included to get the whole picture.
This is a classic deflationary cycle. A downward spiral that feeds itself. Seeing data that clarifies these things is important. The fact that people are not refinancing despite lower rates is an indication of credit/funding availability. As this diminishes, it puts more downward pressure on prices.I am still guessing that rates have to stay low due to lower demand. But risk is growing, so mitigation of risk will have to be installed. I am guessing that higher down payments and tougher documentation proving ability to repay will be the way this is achieved. But I dont know the business that well. Anybody have insight as to this?
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