EconodaySynopsis

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  • Purchase applications for home mortgages fell a seasonally adjusted 2 percent in the August 3 week, posting the fourth weekly decline in a row, while applications for refinancing fell 5 percent to their lowest level since December 2000. Unadjusted, purchase applications were 2 percent below the level a year ago.
  • The refinance share of mortgage activity decreased by 0.5 percentage points to 36.6 percent.
  • Mortgage rates were steady, with the average interest rate for 30-year fixed rate conforming mortgages ($453,100 or less) remaining unchanged from the prior week at 4.84 percent. Higher interest rates are taking their toll on mortgage activity and the 2 percent year-on-year decline in purchase applications does not bode well for a housing market already showing little life.

The MBA mortgage application index is weekly, thus it's a bit noisy. Nonetheless, it's pretty clear what's happening: Home prices are unaffordable and the Fed is hiking. Refinancing makes no sense.

Mike "Mish" Shedlock

Mortgage Monitor: Home Prices Decline 4th Month (Non-Seasonally Adjusted)

Yearly home price appreciation has slowed for 10 months and month-over-month has been negative for four months.

Consumer Sentiment Lowest Since 2012, Consumer Confidence Highest Since 2000

The University of Michigan Consumer Sentiment Index took a plunge today. The Conference Board's measure is at highs.

Mortgage Prison: Sydney Home Prices Suffer Largest Annual Decline Since 2008

Home prices in Sydney and Melbourne are back to 2016 levels. That is a tiny down payment as to what is coming.

"This Isn't a Drill" Mortgage Rates Hit Highest Level Since May 2014

A housing bust may be just around the corner. Rates have climbed to a level last seen in May of 2014.

Wage Growth for Men About 1/4% Per Year Since 2000, Women About 1/2% Per Year

Women are slowly catching up to men in median wages but growth has been pathetic across the board.

Mortgage Rates Highest Since Early 2011: Fed Could Push US Into Recession

The 15-year average mortgage rate is 4.22%. The 30-year rate is 4.72%. These are the highest rates since early 2011.

It's Likely You Can Refinance Your Mortgage At a Lower Rate

Mortgage rates are approaching record lows. Investigate refinancing.

PPI Declines First Time Since August 2016

Producer prices unexpectedly declined in December. Trade services fell a steep 0.6 percent.

Job Openings Decline 7.8%, Most Since 2015

Job Openings fell by 538,000 to 7.1 million.