The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 19, 2010 increased 2.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.1 percent compared with the previous week. The seasonally adjusted Purchase Index increased 14.4 percent from one week earlier, which included Veterans Day. No adjustment was made for the holiday. On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010. The unadjusted Purchase Index increased 9.6 percent compared with the previous week. “The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.
I wonder if this reflects true Mortgage applications for new purchases or are refinanced mortgages included too?
I don’t understand, how to reconcile mortgages being up while sales & prices are falling? Refinancing of existing homes maybe? Trust no one over thirty.
Simple. The data I posted to start this thread pertains to mortgage applications (the future). The data Michael posted (off topic) pertains to closed transactions (the past).
Still a very long way to go so it is not off topic.
New applications went completely in the tank after the tax credit went away at the end of April.
Here is a helpful graphic depiction.
Banks need to dump the whole credit score thing.
Are we having an economic recovery or an economic cover up?
If there is no score then how do you determine who is a high risk and who isn’t? I like the credit score. I woprked hard at keeping it a good one.
When a home buyer applies for a mortgage, it is the lender’s job to find out how the buyer can pay back the loan, and make the payments. Credit scores are the major things lenders are using. I think job history should be a good one. However, lenders and mortgage companies are using everything, and if it is not perfect, you do not get approved. Home buyers then go to other lenders, and may have to apply several times to get a lender to loan them funds, further inflating figures. With so many people out of work, and short employment history, it will be years to turn this truck around.
Banks sell empty properties to other banks, which may play a part in the figures. People under 30 do not have a job, or job history, so lenders are looking at age requirements also. Against the law, but they are considering everything.
Why are my home inspections down? ](*,)
Because most homes are being sold “as is” anyway, so why does the home buyer need to spend $350 to $450 on a home inspection? Several lenders are using appraisers to do home checks for banks, so the appraisers can do the checks for the home buyer, since the buyer pays the appraiser anyway at closing. Negotiating periods are down to just two or three days, so the buyer has no time to get inspections (so say agents).
Licensing is starting to get a bad rap, now most inspectors can write soft, basic reports, so the buyer is just wasting thier money if you hire a home inspector.
Furthermore, in cases of bank owned properties most deals are hammered out prior to the inspection so the client is no longer able to use our report to aid in his negotiations.