by Mish Shedlock, Mish Talk:
Housing crash? You bet. Let’s discuss the details.
Black Knight Mortgage Monitor
Please consider the Black Knight Mortgage Monitor August 2022 Review.
Key Details
- Volumes continued to fall across the board as the originations market adjusted to renewed interest rate pressures and continuing affordability challenges.
TRUTH LIVES on at https://sgtreport.tv/
- Overall, locks were down 57.1% year over year.
- Purchase locks, which now account for 82% of volume, were down 8.7% in August (28.2% year over year).
- Purchase locks were down 30.2% over the last three months.
- Rate/term locks decreased 13.9% in August, cashouts, which had been somewhat insulated early in the rate cycle, fell 8.9%.
Mortgage Origination by Loan Product
US taxpayers are increasingly on the hook housing loans.
Refinance and Purchase Locks Increasingly Fail
Life-Style Maintenance Desperation Sets In
Overall, 18 percent of operations are refis. I have some question in to Black Knight but I fail to see how any of these refi operations can be at a lower rate.
The numbers vary by city.
Refis account for 23% of the volume in Los Angeles CA, 22% in Phoenix AZ, 24% in Atlanta GA, 25% in Riverside CA, and 21% in Tampa FL.
Anyone doing refis at rates close to 6% from rates of under 3% in 2020 has serious issues somewhere!
Existing-Home Sales Fall 5.9 Percent, Down Sixth Consecutive Month
None of the above data should be surprising.
On August 18, I noted Existing-Home Sales Fall 5.9 Percent, Down Sixth Consecutive Month
