From Bloomberg:
U.S. MBA’s Mortgage Applications Fell 1.6% Last Week
A gauge of U.S. mortgage applications fell last week to the lowest level of the year as home purchases and refinancing declined, a sign housing will be less of a source of strength for the economy.
The Mortgage Bankers Association’s weekly application index dropped 1.6 percent to 565.0 from 574.4. The Washington-based group’s purchase gauge fell 2.3 percent to 393.6 from 403.0. …
Purchase applications are down 26 percent since reaching a high in June of last year, the mortgage bankers group said.
…
The mortgage bankers group’s gauge of refinancing fell 0.6 percent to 1574.5 from 1583.6. The index is down 47 percent from a 12-month high reached in June.
Purchase applications have been sliding downward rather dramatically since last summer. If current mortgage applications are at the lowest levels of the year, it’s highly unlikely that we’re going to see any “Spring Boom” this year. While sales will certainly pick up above February levels, it looks like sales volume this year will continue to be significantly lower than levels set in the previous years. Many housing economists are calling for 2006 to be a record year, if the trends that begun in the Fall and through Q1 continue, I can’t see how that will be the case.
Caveat Emptor!
Grim
this is interesting. february is usually the low point in the selling cycle. if march ends up being lower (as it looks like it will), then it should give the downward pricing trend some momentum. the smart sellers should realize there isn’t going to be a spring bounce and react accordingly
My current estimate (done yesterday actually) puts March sales at roughly 1950. That would be ~13% below March ’05 sales and ~15% below March ’04 sales. My estimate also puts sales below 2002 and 2003. I’ll need to compile the data for 2000 and 2001 to see just how deep the multi-year low will be.
March sales will most certainly be higher than February. There isn’t any doubt about that.
grim
well if March sales are higher than Feb, then you will see articles proclaiming a spring bounce, even if sales are down YoY.
Depends on how they calculate the seasonal adjustments. My numbers are always unadjusted, the NAR and NJAR typically adjust for seasonality.
jb
http://www.inman.com/inmannews.aspx?ID=50645
Those who cannot read the whole link here it is split:
http://www.inman.com/
inmannews.aspx
?ID=50645
As Kramer says…SELL SELL SELL SELL GET OUT!
Is this guy for real?
“Stop worrying about the housing market
When 2 billion people in India and China begin to earn wages equivalent to the US, averaging say $40,000 up from $1500, their global earning power will be staggering. 100 million will be super rich, all wanting to buy a house in California, NYC and Wisconsin. I already see the CPE (Chinese prosperity effect) in my lux high rise in San Francisco. We should rename the building Shanghai SF. This is a very exciting trend. I love immigration!
Someone tell David L. at NAR to reforecast. — Bradley Inman”
Anon 1:15PM:
What a flat out pathetic lie!
chicago
I wouldn’t put much weight in what Bradley says. Lately it seems as if he’s been going for shock value and publicity.
grim