Wednesday, July 30, 2014

It's time to start warming up the popcorn machine.

News came today that we are a healthy growing economy. That is a relief if I do say so myself. /sarc I mean, during the Bush years we only grew around 3.8% depending on who you read. So a 4% reading means the world is going gangbusters.

Out will come all the analysts screaming we have to raise interest rates. Do it. Do it now. And I'm going to join the crowd. Why not do it? Lets get it over with already. I'm tired of waiting for this crash.  Plus, I want to see how that whole housing thing turns out with higher rates. I'm guessing not well. This will be the most terrifying entertainment I know of.

Behold why:

Mortgage applications continue fall with 2.2% drop. Refinancings drop 4% with purchases up 0.2%. Dated today.

Mortgage applications rise, but all on refis. Dated Wednesday July 23rd.

"Loan applications to purchase a home are still languishing, up just 0.3 percent week-to-week, on a seasonally adjusted basis, according to the MBA. They are down 15 percent from a year ago."

This is when rates where kissing 4%.

Mortgage volume tanks; Jamie Dimon bashes the FHA. Dates July 16th.

"Mortgage rates are barely moving, but demand among mortgage-dependent home buyers is weakening, data show.
Total mortgage application volume fell 3.6 percent on-week for the week ending July 11th on a seasonally adjusted basis, according to the Mortgage Bankers Association (MBA).

Applications to refinance were down 0.1 percent on week, while applications for home purchase loans dropped 8 percent to their lowest level since February 2014. Purchase applications are now 17 percent lower than the same week one year ago."

HOME PRICES UNEXPECTEDLY FALL FOR THE FIRST TIME SINCE JANUARY 2012.

"Home prices unexpectedly fell by 0.3% month-over-month in May, missing economists' expectations for a 0.3% gain."

Let's get this party started already. Rip off the band aid. I guess we get to see if the Fed is printing money so people can buy houses, or printing money so people can buy stock. Because one side of this equation is not looking so healthy. Raising interest rates can only help that. Right? What could go wrong?

Normally by the end of the month people have snapped up the previous months price reduced houses in my city. This month we are going into August with a lot more than the previous month. It will be interesting to see how fast they clear as the month progresses.

1 comment:

Popcorn Machine said...

News came today that we are a healthy growing economy. That is a relief if I do say so myself. /sarc I mean, during the Bush years we only grew ... ipopcornmachine.blogspot.com