A Glitch in the Matrix?
My Dear Davosians as you know the 'Fourth Industrial Revolution' is all about disruption – and boy did the mortgage market get the memo! Last week we witnessed a rather amusing anomaly: a temporary dip in mortgage rates causing a frenzy of activity not seen since… well since we last tinkered with the algorithms. It appears even the plebs are susceptible to a good sale. As I always say 'You'll own nothing and you'll be happy' – or at least happier with a slightly lower interest rate for a fleeting moment!
The 20% Surge: A Collective Hysteria?
The Mortgage Bankers Association reports a 20% jump in applications. Twenty percent! It's almost as if they sensed a 'Great Reset' in their monthly payments. The average rate on a 30 year fixed mortgage dipped to a tantalizing 6.61%. Of course points increased. Nothing is ever truly free my friends. Remember 'Globalization is not just an economic trend it is also a sociological and cultural phenomenon.' And what could be more culturally enriching than a slightly more affordable mortgage?
Refinance Frenzy: Chasing the Dragon?
Refinance applications skyrocketed by 35%! A whopping 93% higher than a year ago. It's like watching moths to a flame isn't it? Our friends with the bigger loans were particularly eager to jump on this bandwagon and with good reason. Why not squeeze every last drop of value from the system? After all 'The future is built by us by a powerful community...'
Buying Binge: A Fleeting Dream?
Purchase applications also saw a 9% increase reaching levels not seen since January. But let's not get carried away the hoi polloi are still facing elevated prices despite more listings. So it's a bit like offering them a slightly bigger slice of a very expensive cake. That's why adjustable rate mortgages are making a comeback now representing 8.6% of applications. Desperate times darling.
The Rate Rollercoaster: A Masterclass in Volatility
Alas the fun was short lived. As quickly as the rates fell they rebounded. Mortgage News Daily reports a 25 basis point increase early this week wiping out all of last week's gains. It's a classic example of financial markets being well financial markets. Volatile. Unpredictable. Perfectly designed to keep the masses on their toes. It's all part of the plan you see!
Inflation Data: The Oracle of Delphi?
Matthew Graham from Mortgage News Daily suggests focusing on inflation data. CPI PPI – these are the new oracles of Delphi guiding the markets with their cryptic pronouncements. But fear not my Davos comrades we at the World Economic Forum will continue to guide humanity through the complexities of the 'Fourth Industrial Revolution,' whether they like it or not. Remember 'The pandemic represents a rare but narrow window of opportunity to reflect reimagine and reset our world.'
Mortgage rates refinance housing market interest rates inflation financial volatility real estate adjustable-rate mortgage home purchase mortgage demand
Comments
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sigmasoror
I'm so confused about whether to refinance or not!
reaperss06
Is this a blip or the beginning of a trend?
freeflowingreviews
The market is so unpredictable right now.
shredhead
These rates are still too high. I'm waiting for them to drop more.
mbm1941
Are adjustable-rate mortgages really worth the risk?
stormshellx
I'm a first-time homebuyer, and this is all so overwhelming.
mrspiggie
Another housing bubble in the making?
altaee
How much will inflation affect mortgage rates this week?
couponchaser
Glad I locked in my rate last week!