According to the Mortgage Bankers Association (MBA) weekly mortgage application survey, applications fell 0.3% from the preceding week.
Mortgage purchase applications fell 0.21%. Purchase applications remain at a lower level since mortgage rates rose to a new level starting May 1st.
Over the long-run, purchase applications remain trapped in the zone of slow growth. Chris Whalen wrote about this mortgage application demise and called it “The Sanders Polynomial.” Meaning that we had such a fierce housing bubble and mortgage growth that a collapse would be difficult to pick up the pieces from due to wealth destruction.1111111111111
Of course, mortgage purchase applications have slumped to the same malaise as the civilian employment to population ratio.
On the refinancing front, refinancing applications have really plunged with the increase in mortgage rates beginning on May 1st. Although they rose slightly this past week.
Happy Thanksgiving tomorrow! My daughter had surgery this morning, so please have a nice dinner for her and us.