Kett82, I'm not sure why the media slants the story. The MBA played it straight using the word "steady". I added the comparison to last year to show how things have changed - the Purchase Index is off 11.8% from very high levels - so clearly activity is still fairly high, but slowing.
CR - Are there any figures that track the number of equity line applications? Are the included in refi apps? I would tend to think not, but don't really know.
Our equity line business has suddenly exploded over the last few weeks... up 50% at least. We got a heads up from our client - one of the very big national banks - saying to look out... equity-line closing volume was going to double over the next few months.
I am not so sure that it is a "high" level of activity insofar as purchase is concerned. Sure, historically it is high. But that is like saying that Nasdaq is historically high at 2300. Activity is down nearly 20% from peak. That represents a level of existing home sales + new home completions (not sales) at around 6.7 million, a level not seen since mid-2003. That is a huge decline in activity. And I dont think we are done yet.
Anonymous, I'm not aware of any data on just equity lines. They are included in the FED's Flow of Funds report - but that is just quarterly and is a few months late (Q4 will be tomorrow - not exactly up to date!).
tea, I understand your point - my "fairly high" activity comment is definitely subjective.
Objectively activity is about 20% below the 2005 peak and 11% below this time last year. That still hasn't shown up significantly in employment or in pricing (except in certain areas).
Looking forward, I expect activity to fall even more.
Dear Mr. Calculated
Have to say, I enjoy your blog. Every headline in mainstream media went like this:
US home loan applications rise despite higher rates
Reuters
US mortgage applications increase last week
Reuters
Refinancing Boosts Mortgage Applications
FOX News
Mortgage applications up last week
USA Today
Home loan applications rise despite higher rates
Boston Globe
Basically, activity was steady (0.7% adjusted increase) and off the peaks of 2005.
Why the slant in the media, or is that just me?
Kett82, I'm not sure why the media slants the story. The MBA played it straight using the word "steady". I added the comparison to last year to show how things have changed - the Purchase Index is off 11.8% from very high levels - so clearly activity is still fairly high, but slowing.
Best Wishes.
CR
CR - Are there any figures that track the number of equity line applications? Are the included in refi apps? I would tend to think not, but don't really know.
Our equity line business has suddenly exploded over the last few weeks... up 50% at least. We got a heads up from our client - one of the very big national banks - saying to look out... equity-line closing volume was going to double over the next few months.
Any ideas on this?
dont worry, water doesnt flow uphill
CR,
I am not so sure that it is a "high" level of activity insofar as purchase is concerned. Sure, historically it is high. But that is like saying that Nasdaq is historically high at 2300. Activity is down nearly 20% from peak. That represents a level of existing home sales + new home completions (not sales) at around 6.7 million, a level not seen since mid-2003. That is a huge decline in activity. And I dont think we are done yet.
Anonymous, I'm not aware of any data on just equity lines. They are included in the FED's Flow of Funds report - but that is just quarterly and is a few months late (Q4 will be tomorrow - not exactly up to date!).
tea, I understand your point - my "fairly high" activity comment is definitely subjective.
Objectively activity is about 20% below the 2005 peak and 11% below this time last year. That still hasn't shown up significantly in employment or in pricing (except in certain areas).
Looking forward, I expect activity to fall even more.
Best Wishes.