The numbers in the most recent Mortgage Bankers Survey look good for banks but not so good for housing.
While refis were up 11.3% from the previous week, purchase aps were at their lowest level since December 2000, dipping 13.7% from the previous week.
Although total mortgage loan application volume increased 3.2 % from the previous week (a seasonally adjusted increase of 2.8 %), refinancing took a larger share, increasing to 71.5% from last week’s 66.1%.
What the numbers don’t tell us is the impact refis are having on removing bad loans from the books. And if new purchases stall, even with tax credit now available to existing home owners, there may be more pain to come in the housing market.
Once again, Banks 1, Joe Citizen 0.