Mortgage Applications Rose Week of June 25th
July 9, 2010
The Mortgage Bankers Association reported its seasonally adjusted composite index of mortgage applications for the week of June 25 rose 8.8%. Refinancing applications increased 12.6% while purchase volume declined 3.3%.
An increase of 0.8% was seen in April with a 0.1% decrease in March on The Standard & Poor’s/Case-Shiller 20-city housing price index.
The National Association of Realtors accounted that the pending home sales index, which is a forward-looking indicator based on signed contracts, decreased 30% in May while a revision was made in April with a 6% increase.
Spending for total construction declined 0.2% to $841.9 billion in May, after a revised 2.3% rise in April. Economists had predicted a larger drop of 0.5% in May.
Consumer confidence index declined to 52.9 in the month of June while the revised number for May was 62.7. Economist believed the reading was going to be 62.8. The index was benchmarked in 1985 at 100; this year was chosen, as it was neither a peak nor a low in consumer confidence.
The Institute for Supply Management stated that the monthly composite index of manufacturing activity was 56.2 in June while in May it was at 59.7. Any reading above 50 is a sign of expansion. This made 11th months of expansion in a row.
In May, factory orders declined 1.4%, which was more than the 0.5% decrease from what economists had anticipated. This was the largest drop since March 2009, which ended 8 straight monthly gains.
Initial claims for unemployment benefits increased by 13,000 to 472,000 for the week that ended on June 26. Continuing claims for the week that ended on June 19 increased by 43,000 to 4.62 million. The unemployment rate decreased in June to 9.5% from a 9.7% in the month of May.
Economic calendar upcoming include reports on wholesale trade on July 9 and chain store sales on July 7.
9 Comments to Mortgage Applications Rose Week of June 25th
Comments
Thanks for these info. According to the latest figures released by the Mortgage Bankers Association (MBA), applications for mortgages rose slightly last week by a seasonally adjusted rate of 0.3% over last week.
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I don’t know for sure what’s happening or what will happen with the real estate market, but I do have some opinions I would like to throw out.
I think a lot of these changes have to do with the tax credit. Now that it’s expired, there are less buyers. Construction has declined, but I think that’s only temporary. If the tax credit helped enough, coupled with the slightly improving job market, we will see everything pick up.
One of the biggest possible thing that may hold the market back are ARM mortgages that are reaching maturity and forcing people to refinance. The problem with that is no bank wants to do a refinance on a home that isn’t worth the last loan, so they aren’t going to take a chance on giving the home owners new loans. When that happens, they have no choice but to give the house back to the bank with a deed in lieu, short sale, or foreclosure.
Oh man! I wrote a blog just like this on my site. Practically the same info. Refinance apps are up for sure. Probably no coincidence that FHA commish David Stevens wrote a pretty demanding letter to lenders the other day. One goes up, the other goes down.
I don’t know for sure what’s happening or what will happen with the real estate market, but I do have some opinions I would like to throw out.
Very useful information… Thanks for sharing this
This is good new but i was wondering if anyone has the data for July yet? What we really need is for the fed to loosen the requirements for credit. With rates this low there would be tons of refi’s and that would stimulate the economy better than any of the current policies in place.
Very useful information… thanks a lot
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