Earlier this week, the country’s first marijuana cafe opened up, which not only sells medical marijuana, but also has a restaurant where customers can eat. In a related story, the recession is over!
Whoever wants a 4.50% 30-yr fixed rate conforming loan with a point back to cover closing costs, raise your hand! Well, we’re just about there. Fannie 4% securities are shuffling around 99 or 100, and when you throw some servicing-released premiums on the price, you’re easily above par. And who wouldn’t want to own this servicing? Even I am thinking about refinancing, and I don’t even own a place! Seriously, heck, I have a 7-yr ARM that closed in 2003 at 4.75% (so it starts adjusting next year) that I am thinking about refinancing. Given the 30% LTV maybe I can even find an investor!
So if rates are so great, why are applications dropping and agents continuing to work twice as hard for half as much business?For last week, the MBAA’s weekly application index dropped 4.5% with applications to buy a home up 9.6% and refi’s down 9.5%. (“The MBA revised the indices for the prior week.) Does this data support what many in the business already are feeling: That most people who can refinance already have, that the economy would have to go further into the tank for mortgage rates to drop much more, and we’d better get used to a purchase market in the coming months and next year?
How long does it take the MBAA to compile multifamily statistics? I guess eleven months, since Monday’s headline read, “MBA Reports Multifamily Lending 40 Percent Lower in 2008 Than 2007; Market Remained Broad and Diverse”. Their report stated that “2,877 different multifamily lenders provided a total of more than $88 billion in new financing for apartment buildings with five or more units, which is a 40% decline from 2007 levels, and the top five were PNC Real Estate, Wachovia, Wells Fargo Bank, N.A, Capmark Financial Group Inc, and Deutsche Bank Commercial Real Estate. The report also mentioned that 26% of lenders who made multifamily loans in 2008 made just one, and two-thirds made five or fewer!
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(There will be no commentary on Friday – I’ll be in Best Buy looking for bargains.)
Rob