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Realistbear

Mortgage Bankers Association Report Lowest Demand Since 2003

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http://www.usatoday.com/money/economy/hous...htm?POE=NEWISVA

Home loan demand lowest since November 2003

Posted 4/26/2006 10:26 AM ET

NEW YORK (Reuters) — Mortgage applications fell for a third consecutive week, with demand for home purchase loans falling to its lowest level since November 2003 despite a drop in interest rates, an industry trade group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended April 21 fell 3.7% to 548.6, its lowest level this year.
The MBA's seasonally adjusted purchase mortgage index fell 4.4% to 389.4, its lowest level since Nov. 7, 2003 when it touched 375.4. The index stood at 482.0 a year ago.

And the US bubble is not as widespread as ours with the froth mostly confined to the coastal markets. The US also has many more long term fixed rate loans (15-30 year) which adds stability to the market and protects OOs from changes in the rates (unless they sell or move as most mortgages are not portable in the US). In the UK, most mortgages are short term fixed or variable--and many more IO. The UK market therefore faces a perilous crash when higher rates begin to bite.

:)

10 year bond busts through 5%:

10-Year Note 95.20+-.21 dn .20+ 5.069%

Edited by Realistbear

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Why should the UK follow?

History repeats. UK in about the same position as the US debt-wise and bubble-wise. Similar irrational exhuberance exhibited over past 7 years. Affordability crisis same. FTBs priced out of "froth" markets. IR rising. Many other similarities.

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No because they tell us what to do.

The interest rate rises in 2004 were to stop you losing out on the house market BEFORE you had chance to vote for the labour party.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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