Mortgage application volume hits multiyear low

[gdcox]

Thanks for all that .

From the last link

‘Of all mortgage applications accepted during the month of July 2008, 29.1 percent were for government-insured loans (consisting of mostly FHA loans) compared to 8.4 percent in July 2007. ‘

Since the mortgage app figure includes refis, then the share of gov guarantees in the non-refi apps will be much large. I think I read somewhere that direct and indirect government support for non-refi apps was over 90%.

[(former)FormerSanDiegan]

[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.

[(former)FormerSanDiegan]

[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.

[(former)FormerSanDiegan]

[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.

[(former)FormerSanDiegan]

[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.

[(former)FormerSanDiegan]

[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.

[peterb]

Our 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?

[peterb]

Our 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?

[peterb]

Our 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?

[peterb]

Our 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?

[peterb]

Our 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?

[Author]

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