The Banking and Strategy Initiative

Chillin' out till it needs to be funded

US Economy: The MBA refinancing report?

the MBA report Composite index grew a healthy 7% as the refi grew 9% and the Purchase index stood still at rates below 3.5% for the mortgage market. The Housing recovery likely waiting for the mortgage servicers to again be in a position to push the mortgages on to borrowers, as short sales ride to 36% of foreclosures, banks paying underwater homeowners to move on instead of recovering on the short loan gap. The State AGs are free to prosecute banks after the coming settlement, so now one has to wait to find out if the banks will come to the table to sign the settlement, just to get rid of the baggage and get to the lending business that is now their only hope.

The optimism from yesterday’s cRedit report is also going to be on hold in afew weeks as without the improvement needed in jobs with  the new jobs added hardly obver the number required to cater to the added working population each month and still looking at a wide U6 gap as 44% remain unemployed for more than 6 months. In this the rise in revolving credit is already half that in November at $2.8 bln yesterdaya and no new credit seems to be going to homes. Tomorrow, the Existing home sales and Price data may turn the tables to optimism again but we are now looking at being limited in our range of optimism for the US market

This could be the right time for that ETF introduced only ont he movements of the Case Schiller index, now that extra Dodd Frank scrutiny promises more people wll know what is happening ‘on the “inside”‘


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