Mortgage Applications Rise
Mortgage applications rose recently. Does this mean the real estate market is turning around? Let's think this through.
And, of course, the vast majority of Americans buy houses by taking on mortgage debt. So none of this appears to signal anything especially positive, even though the article does make it seem like a positive development.
(You can read the rest of the article by clicking HERE.)
"Applications for U.S. home mortgages rose last week as interest rates dropped to record lows in the wake of the Federal Reserve's latest stimulus efforts, data from an industry group showed on Wednesday."Now consider that new mortgages from refinancing are down 10% from last year. Then read this:
The refinance share of total mortgage activity increased to 81.2 percent of total applications, the highest share since early August.So if refinancing is down 10% from last year, but it now makes up an increased share of total mortgage applications, then it would seem the total applications must be down too. Do the math.
And, of course, the vast majority of Americans buy houses by taking on mortgage debt. So none of this appears to signal anything especially positive, even though the article does make it seem like a positive development.
(You can read the rest of the article by clicking HERE.)
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