Wednesday, April 13, 2005

Mortgage Aps Down

The Mortgage Bankers Association reports that applications are down. "On an unadjusted basis, the Index increased 6.2 percent compared with last week but was down 12.1 percent compared with the same week one year earlier."

4 Comments:

At 10:58 AM, Anonymous Anonymous said...

This is some interesting data. Because aps are up from last week this story has taken on an upbeat tone from the usual media outlets. :-) Perhaps someone knows of a good layman's study on why mortgage rates sometimes move opposite to the trend on short term rates. A few people on this board have mentioned carry-trades and the like and I believe this must be connected somehow but I don't know for sure, and would like to learn more.

 
At 3:30 PM, Blogger Ben Jones said...

(this story has taken on an upbeat tone from the usual media outlets)

Yeah, they always use the most positive number. That's one of the reasons I started this blog. I have felt this thing has been headed down for some time.

Maybe some RE professionals will help us out with your question.

 
At 5:41 PM, Anonymous Anonymous said...

I think there is some historical support for a larger number of people rushing in to get mortgages as interest rates start to rise. The thinking being that if they don't act now they won't be able to buy in later with the higher interest rates. The game of hot potato goes on...

 
At 5:59 PM, Blogger deb said...

Mortgage rates are most closely tied to the 10 yr note. As the Fed has raised short term rates the long term rates have not moved much (in fact, for a time, they went down!). Long term rates are set by the market. This was Greenspan's "conundrum".

 

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