Revealing Statistics on Home Mortgages

Today's Headlines (11/11/2010):


"%'age of Homeowners Underwater Reaches New Peak"
"Loan Applications Jump 21% Last Week"
"Home purchase Mortgage Applications Last Week Plummet"
"Home purchase Mortgage Applications increase for 3rd consecutive week"


Huh??? Confused??? It's all in the numbers!


Headlines do not tell the story. The last article reporting an increase for the 3rd consecutive week chose to use a Ratio instead of actual numbers - a little deceptive. The writer quoted an index measuring the volume of loan applications for a home purchase as compared to total loan applications received.
Example:
Week 1: 100 applications - 5 were for purchasing a home instead of a refinance
Week 2: 90 applications - 4 for purchasing a home
Week 3: 75 applications - 3 for purchasing a home
The rations are:
Week 1: 5:95
Week 2: 4:90
Week 3: 3:75
Even though the number of applications received plummeted and the number of home purchase applications declined each week --- there is an increase in the ratio for 3 weeks in a row!

So, all the articles are correct - they just know how to find the statistics to slant a story in their direction...this is nothing new; reporters do this all the time. It is Reader Beware!


I scan these articles every day - what is missing from all of these is a report of the 'approved' applications...does that tell a different story???


Ah well - so glad I'm in Property Management where the rents are holding steady and the residents are happy to be paying rent instead of a mortgage!