Mortgage Bankers Weekly Update
Refinance Index: decreased 16.2 percent from the previous week
Purchase Index: decreased 5.2 percent from one week earlier.
Refinance Share of Mortgage Activity: decreased to 62.3 percent of total applications from 65.0 percent the previous week.
ARM Refinance Activity: increased to 6.9 percent from 6.4 percent of total applications from the previous week.
MBA outlook: (Excerpted from mbaa.org)
New home sales increased in August, for the fifth consecutive monthly increase. The first-time homebuyer tax credit likely helped boost sales since a larger share of home sales tended to be concentrated in lower-priced homes. New home sales have been up about 30 percent since reaching a record low in January. Total existing home sales fell slightly for August but were still about 13 percent higher than their record low in January despite the decrease .
For existing homes, the number of homes available for sale has declined about 16 percent from a year ago. The months’ supply decreased to 8.5 in August from 9.4 months in July, which makes this the lowest level since April 2007 and a significant decrease from the 11.3 months observed in April 2008. However, rising foreclosures continue to add to inventories, and many owners and investors who, after holding these properties off the market for the past year, may start listing their properties if the market begins to recover
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Comments (5)
necessary for who? What do you think is about to happen when those that take advantage of the tax credit find out they really could not afford the home and we have another round of foreclosures?
Jim Wineinger, almost 15 years ago
Real estate trade groups are saying that a deal struck in the Senate would continue the $8,000 credit for first-time buyers into April and add a $6,500 credit for repeat buyers who have lived in their current home for at least five years. People realize that between the recession causing home owners to lose property at a fast clip, commercial property facing similar problems and the Alt A threatening to put more supply on the market that we could double dip, if nothing is done to minimize the problem. In the 2001 recession we were jobless for 18 months after the technical end of that recession. So...this is likely to continue and the help is necessary.
Howard, almost 15 years ago
Perhaps this is why the Senate is considering a tax credit for those who have been in their homes at least 5 years--so they will get out and buy a higher end home.
Jon Klaus, almost 15 years ago
Yes, but another big foreclosure problem in the form of Alt mortgages is about to hit the high end. They were used a lot here in San Francisco (read high end) and when they reset many will double the monthly cost. Another big reason that the high end will see price declines. I have read that the Alt A reset is as big as the sub prime mess
Howard, almost 15 years ago
As people refinance into lower priced homes or to reduce their monthly expenses, this will have an affect of increasing future supplies of those larger homes which still have to decrease in value to become affordable to many. Sound like good news to me.
Jim Wineinger, almost 15 years ago