Homes Prove Not Weatherproof
weatherproof home
Even while the Mortgage Bankers Association (MBA) adjusts its data for seasonality, it could still be noisy or skewed by Memorial Day variation. However, we suspect several extraordinary issues are at play in messing up mortgage flow, and for that matter general economic activity as well. It’s the weather stupid!

financial analystOur founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: NYSE: BAC, NYSE: GS, NYSE: MS, NYSE: WFC, NYSE: TD, OTC: FMCC.OB, OTC: FNMA.OB, NYSE: PNC, NYSE: JPM, NYSE: BBT, NYSE: CIT, NYSE: BKU, Nasdaq: UBSI, NYSE: BK, Nasdaq: MBFI, NYSE: AF, NYSE: NYB, Nasdaq: HCBK, Nasdaq: PBCT, Nasdaq: FNFG, Nasdaq: CFFN, Nasdaq: WFSL, Nasdaq: ISBC, Nasdaq: NWBI, Nasdaq: STSA, NYSE: OCN, NYSE: FBC, NYSE: PFS, Nasdaq: COLB, Nasdaq: KRNY, Nasdaq: BRKL, Nasdaq: DCOM, Nasdaq: FFIC, Nasdaq: DNBK, OTC: FCNCA.PK, NYSE: SNV, Nasdaq: UBSI, Nasdaq: HMPR, Nasdaq: WSBC, Nasdaq: CHCO, Nasdaq: SASR, OTC: FCBN.OB, Nasdaq: SCBT, NYSE: WL, Nasdaq: WSFS, Nasdaq: SBSI, Nasdaq: STEL, Nasdaq: UBSH, Nasdaq: EGBN, Nasdaq: FBNC, Nasdaq: ABCB, Nasdaq: TBBK, Nasdaq: FCBC, Nasdaq: CCBG, Nasdaq: FISI, Nasdaq: NKSH, Nasdaq: CZNC, Nasdaq: CHFN, Nasdaq: SBCF, Nasdaq: TIBB, Nasdaq: AMNB, Nasdaq: UCBI, Nasdaq: MBRG, Nasdaq: HBOS, Nasdaq: ZION, Nasdaq: EWBC, NYSE: CYN, NYSE: BOH, Nasdaq: SIVB, Nasdaq: WABC, Nasdaq: CATY, Nasdaq: UMPQ, Nasdaq: GBCI, Nasdaq: PCBC, Nasdaq: PACW, NYSE: WAL, OTC: FBAK.OB, Nasdaq: FIBK, Nasdaq: NARA, Nasdaq: WCBO, Nasdaq: TCBK, Nasdaq: TBNK, Nasdaq: WCBO, Nasdaq: BMRC, Nasdaq: HAFC, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, NYSE: ICE, Nasdaq: NDAQ.

Homes Prove Not Weatherproof

The MBA reported for the week ending June 3 this last week, which included the May 30 falling of Memorial Day. There was a wild variance between the week’s seasonally adjusted and unadjusted mortgage application indices, so the holiday certainly came to play. However, considering activity dropped relatively sharply even after adjustment, it’s possible the MBA may have done an imperfect job in its tweaking. However, common sense tells us that several extraordinary issues are likely at play here and in other data.

Let’s Look at the Housing Data:

The MBA reported for the week ending June 3, which included the May 30 falling of Memorial Day. Of course, the prior week did not include the holiday, and produced a relatively stronger flow of activity. The MBA’s Market Composite Index of mortgage activity fell by 11% on an unadjusted basis, but only decreased 0.4% after adjustment. The MBA’s Refinance Index, which is not seasonally adjusted but tweaked for the holiday, gained 1.3% against the prior week. It had good reason to rise, as the average contracted rates on 30-year and 15-year fixed rate mortgages improved to 4.54% (from 4.58%) and 3.67% (from 3.78%) in the period.

The Purchase Index, which measures mortgage applications on home purchases, fell 15.2% before adjustment due to the holiday. However, it sank 4.4% even after adjustment. Why the non-negligible decline in Purchase Activity even after adjustment? I think the weather came into play, with so much of the central portion of the country battling floods and tornadoes of late. I know that weather impact is vague and tough to measure, and often used by corporations and the government to cover for failure. However, we’ve seen an extraordinary level of flooding within the nation’s center, and apocalyptic tornadic activity could certainly have frozen business with its inherent uncertainty. Thus, with regard to housing and mortgage activity, and also general economic activity, we should not rule out the impact of weather over these last few months as an important factor in recent softness. Homes have proven not to be weatherproof.

Yeah I said it, it’s the weather stupid! It’s certainly had some negative impact, though we continue to see gasoline prices near $4 and high commodity costs as more important.

home forum

Editor's Note: Article should interest investors in Bank of America (NYSE: BAC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Wells Fargo (NYSE: WFC), Toronto Dominion (NYSE: TD), BB&T (NYSE: BBT), CIT (NYSE: CIT), Bank United (NYSE: BKU), First Citizens (OTC: FCNCA.PK), Synovus (NYSE: SNV), United Bankshares (Nasdaq: UBSI), Hampton Roads Bankshares (Nasdaq: HMPR), WesBanco (Nasdaq: WSBC), City Holding (Nasdaq: CHCO), Sandy Spring (Nasdaq: SASR), First Citizens (OTC: FCBN.OB), SCBT Financial (Nasdaq: SCBT), Wilmington Trust (NYSE: WL), WSFS Financial (Nasdaq: WSFS), Southside Bancshares (Nasdaq: SBSI), Stellar One (Nasdaq: STEL), Union First Market (Nasdaq: UBSH), Eagle Bancorp (Nasdaq: EGBN), First Bancorp (Nasdaq: FBNC), Ameris (Nasdaq: ABCB), The Bancorp (Nasdaq: TBBK), First Community (Nasdaq: FCBC), Capital City (Nasdaq: CCBG), Financial Institutions (Nasdaq: FISI), National Bankshares (Nasdaq: NKSH), Citizens & Northern (Nasdaq: CZNC), Charter Financial (Nasdaq: CHFN), Seacoast Banking (Nasdaq: SBCF), TIB Financial (Nasdaq: TIBB), American National (Nasdaq: AMNB), United Community (Nasdaq: UCBI), Middleburg Financial (Nasdaq: MBRG), Heritage Financial (Nasdaq: HBOS), Zions Bancorp (Nasdaq: ZION), East West Bancorp (Nasdaq: EWBC), City National (NYSE: CYN), Bank of Hawaii (NYSE: BOH), SVB Financial (Nasdaq: SIVB), Westamerica (Nasdaq: WABC), Cathay General (Nasdaq: CATY), Umpqua (Nasdaq: UMPQ), Glacier Bancorp (Nasdaq: GBCI), Pacific Capital (Nasdaq: PCBC), PacWest (Nasdaq: PACW), Western Alliance (NYSE: WAL), First National Alaska (OTC: FBAK.OB), First Interstate Bancsystem (Nasdaq: FIBK), Nara (Nasdaq: NARA), West Coast (Nasdaq: WCBO), TriCo (Nasdaq: TCBK), Territorial (Nasdaq: TBNK), Washington Banking (Nasdaq: WCBO), Bank of Marin (Nasdaq: BMRC), Hanmi (Nasdaq: HAFC), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), United Bankshares (Nasdaq: UBSI), Bank of New York Mellon (NYSE: BK), MB Financial (Nasdaq: MBFI), Astoria Financial (NYSE: AF), New York Community (NYSE: NYB), Hudson City (Nasdaq: HCBK), People’s United (Nasdaq: PBCT), First Niagra (Nasdaq: FNFG), Capitol Federal (Nasdaq: CFFN), Washington Federal (Nasdaq: WFSL), Investor’s Bancorp (Nasdaq: ISBC), Northwest Bankshares (Nasdaq: NWBI), Sterling Financial (Nasdaq: STSA), Ocwen (NYSE: OCN), Flagstar (NYSE: FBC), Provident (NYSE: PFS), Colombia Banking (Nasdaq: COLB), Kearny (Nasdaq: KRNY), Brookline (Nasdaq: BRKL), Dime Community (Nasdaq: DCOM), Flushing Financial (Nasdaq: FFIC), Danvers (Nasdaq: DNBK).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Greek Orthodox stefana

Inquiries about Wall Street Greek content and advertising services can be emailed to Advertise @WallStreetGreek.com.

Related Stocks:
1ST INTST BANCSYS-A ASTORIA FINANCIAL CORP. American National Bankshares I Ameris Bancorp BANK OF AMERICA CORP. BANK OF HAWAII CORP. BANK OF MARIN BANKUNITED, Inc. BB&T CORPORATION Bank of New York Brookline Bancorp, Inc. CAPITOL FED FIN CIT GROUP INC. NEW CITY NATIONAL CORPORATION Capital City Bank Group, Inc. Cathay General Bancorp Citizens & Northern Corporation City Holding Co Columbia Banking Systems, Inc. Dime Community Bancshares Eagle Bancorp, Inc. East-West Bancorp, Inc. Federal Home Loan Mortgage Corporation Federal National Mortgage Association Financial Institutions, Inc. First Bancorp/NC First Community Bancshares, Inc. First Niagara Financial Group Flushing Financial Corp GOLDMAN SACHS GROUP, Inc. Glacier Bancorp, Inc. HAMPTON RDS BKSHS HERITAGE FINL Hudson City Bancorp INVESTORS BANCORP JPMORGAN CHASE & CO. Kearny Financial Corporation MB Financial Corp MORGAN STANLEY Middleburg Financial Corp NEW YORK COMMUNITY BANCORP, Inc. NORTHWST BNCSHS National Bankshares Inc/VA OCWEN FINANCIAL CORPORATION PACWEST BANCORP PEOPLE'S UNTD PNC FINANCIAL SERVICES GROUP PROVIDENT FINANCIAL SERVICES, Inc. STERLING FINANCIAL SVB Financial Group SYNOVUS FINANCIAL CORP. Sandy Spring Bancorp, Inc. Southside Bancshares, Inc. TERRITORIAL BNC TORONTO DOMINION BANK The Bancorp, Inc. Trico Bancshares UNION FIRST MKT Umpqua Holdings Corp United Bankshares, Inc. WELLS FARGO & CO. WESTERN ALLIANCE BANCORPORATION WSFS Financial Corp Washington Federal, Inc. WesBanco, Inc. Westamerica Bancorporation Zions Bancorp
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here