RE and economic charts: MBA Application Survey – June 29 2011 = Purchase Application activity decreases

Thursday, June 30, 2011

MBA Application Survey – June 29 2011 = Purchase Application activity decreases

[mEDITate-OR:
only think you hear the engine running...
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While both Bill@CR and the Paper Economy tell U.S. that the mortgage interest rates are down, again...
they also show U.S. that is having little to no effect.
The problem(s) are:
first, those still with jobs either have already REFId, or cannot do so...
and
second, lender are NOT making new RE loans.
some blame tighter lending standards
but some point out that both FMae&FMac are at the top of their lending authority.
AND
they must, under the existing law, substantially reduce their total lending amounts.
and
the jumbo RE loan limits are also being reduced.
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Even if there were no more foreclosures, there would be a reduced supply of funds...
but, of course, there are more foreclosures...,
as we learned to say in Vietnam: "incoming"!
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the average rate for a 30 year fixed rate mortgage declined to 4.46% since last week

while the purchase application volume declined 3.0% and

the refinance application volume dropped 2.6% over the same period.

The four week average of purchase activity is at about 1997 levels - and mostly moving sideways.

the purchase application volume remains near the lowest level seen in well over a decade

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as the unemployment post below argues
THIS, too, is the shape of an "L" recovery.
translated from economics - there IS not recovery, yet.
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