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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: steve susko who wrote (78526)	6/13/2002 3:56:48 PM
From: augieboo	Respond to of 99280

Steve, here's an article from this month's newsletter which says a heck of a lot more about the reality of the situation here in California: Loan applications down 5.5 percent Refinance Index continues to climb Wednesday, June 12, 2002 The market composite index of mortgage loan applications, a seasonally adjusted a measure of mortgage loan purchases and refinancings, for the week ending June 7 decreased 5.5 percent to 554.9 from 587.4 the previous week, according to Mortgage Bankers of America's weekly survey. [Note that they only give the percentage decline in the overall figures, and do not break out the percentage decline in NEW loans. They leave that for us to do ourselves in the next paragraph.] The seasonally adjusted Purchase Index decreased to 359.0 from 414.0 the previous week. [augieboo note: According to my calculator, that's a 13% DECREASE in new home loans in ONE WEEK!] The seasonally adjusted Refinance Index increased to 1693.8 from 1596.4 the previous week. Refinancing activity represented 42.3 percent of total applications, up from 37.2 percent the previous week. ARM activity increased to 17.5 percent from 16.4 percent the previous week. The average contract interest rate for 30-year fixed rate mortgages was 6.65 percent, down slightly from 6.66 percent the previous week. Points on these loans, including the origination fee, increased to 1.61 from 1.42 the previous week for 80 percent LTV ratio loans. The average contract interest rate for 15-year fixed rate mortgages was 6.15 percent, up from 6.11 the previous week. Points on these loans, including the origination fee, increased to 1.33 from 1.26 the previous week for 80 percent LTV ratio loans. The average contract interest rate for 1-year ARMs was 4.48 percent, down from 4.55 percent the previous week. Points on these loans decreased slightly to 1.13 from 1.14 the previous week for 80 percent LTV loans. The survey covers approximately 40 percent of all U.S. retail residential mortgage originations and has been conducted weekly since 1990.