TRADEX GLOBAL INTERNAL COMMENTARY
Well, this was not surprising. Mortgages for new homes dropped 1%, and
mortgages for refinancing was up 2%!
This was not surprising based on the amount of new homes built, the
existing homes stuck in foreclosure or the ones that no one wants! HARP 2 is working as less credit-worthy
borrowers and homes with negative equity are allowed to refinance at a lower
rate. We believe that we are close to
the final innings of refinancing as most homeowners that can, already have done
so. We do own IO’s, and this didn’t have
much impact on the markets, but we are watching closely. Keep nimble – Michael Beattie
EXTERNAL RESEARCH COMMENTARY
Applications for U.S. home mortgages increased last week as
record-low interest rates spurred demand for refinancing, although loans for
purchases slipped, an industry group said on Wednesday. The Mortgage Bankers
Association said its seasonally adjusted index of mortgage application
activity, which includes both refinancing and home purchase demand, rose 0 .9
percent in the week ended Jul y 20. The MBA's seasonally adjusted index of
refinancing applications rose 1.8 percent, while the gauge of loan requests for
home purchases, a leading indicator of home sales, fell 2.8 percent. The
refinance share of total mortgage activity rose to 80.8 percent of applications
from 8 0.1 percent the week before. Fixed 30-year mortgage rates held steady at
3.74 percent, the lowest rate in the survey's history. The survey covers over
75 percent of U.S. retail residential mortgage applications, according to MBA.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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