Mortgage lending declined to the lowest level in 14 years as homeowners pulled back sharply from refinancing and house hunters showed little appetite for new loans. Nick Timiraos joins MoneyBeat.



Category: Credit, Real Estate, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “The Refi Boom Is Over”

  1. DeDude says:

    If there is going to be less supply of mortgages then that would be a good time for the Fed to get out of purchasing them.

    • bsnceo says:

      DeDude, for argument sake only and with the utmost respect for your suggestion, which would you rather the Fed buy:
      (A) Treasury instruments where the Fed spends taxpayer money (right off the printing press?) for an asset on which it collects interest from the U.S. Treasury (Does it give the interest received back to the U.S. Treasury?). Later, to get rid of the asset, it sells the Treasury instrument at a very depressed price because the Fed itself increased interest rates so and that made it worth less. (Did I describe this correctly?)

      OR: (B) Mortgages, which are amortized for a while (as in positive cash flow from a 3rd party received at the Fed, which it can then give it to the U.S. Treasury) and then later,when the secured asset is sold or refinanced, the mortgage gets paid off; some will go bad, but eventually most of the mortgages will go away in exchange for cash. The Fed then shows its hands as clean and figuratively, goes away. This is best case. If only it would be this way.

      Whichever one you may think is better, should probably skip going to B of A for help in analyzing it.

  2. Willy2 says:

    - Surprise, surprise. Just watch what has happene to interest rates.
    - I love to see how they’re trying to spin the marketnews.

    • Futuredome says:

      nothing to spin. everybody that refi’d has and real estate is in a permanent bear state, say unlike tech which is surging. hence, who cares what happens with interest rates.