The Mortgage Bankers Association market information contradicted what Countrywide, the largest lender reported.
Via MBA.
- For the week ending 10/5/07, the Market Composite Index, a measure of mortgage application volume, increased by 2.4% to 652.0 from 637.6 a week earlier.
- The Refinance Index also increased 2.7% to 2003.2 from 1950.4 a week earlier.
- The refinance share of the total mortgage volume increased to 46.2% from 46% the previous week.
- ARMs activity declined to 13.6% from 13.8%.
- The average 30-year fixed-rate mortgages increased to 6.4% from 6.32%, with points down to 1.0 from 1.08 for the 80% LTV (loan-to-value) loans.
- The average 15-year fixed-rate mortgages increased to 6.03% from 5.95% with points increasing to 1.12 from 1.07 for 80% LTV loans.
- The average 1 year ARMs decreased to 6.15% from 6.21%, with points increasing to 0.92 from 0.89 for 80% LTV loans.
MBA annual study also shows that mortgage banking profit fell in 2006. It started out in 2006, the profit fell to negative $50 per loan from positive $258 in 2005. Got it?
Meanwhile, Countrywide, U.S. largest lender, reported a grim outlook for their line of business.
- On month-to-month comparison, mortgage lending fell to $21.2 billion in September from $38.1 billion a year earlier.
- Funding for adjustable loans slip 76 percent from a year earlier. Subprime down 92 percent.
- Their loan delinquencies of unpaid principal rose to 5.85 percent from 4.9 percent meanwhile pending foreclosures rose to more than doubled to 1.27 percent from 0.51 percent a year earlier.
via Reuters
To compound that problems, Bloomberg also reported that Countrywide new loans fell 44 percent due to weak housing market!
Countrywide's servicing business, which does billing and collections, serves as a barometer for current conditions in the mortgage industry. The company's report adds to evidence that the worst U.S. housing slump in 16 years is getting deeper.
via Bloomberg
Other market indicators.
- Florida, once the capital of "home flippers," has tipped into recession.
- You ain't see nothing yet because the weak of home prices drives defaults and not the mortgage rate resets.
- Softening housing market hurt retailers September same-store sales.
