Wednesday, December 03, 2008

Question of The Day - Noise of Convenience?

Rates fell and mortgage application volume jumped dramatically but (looking at the chart above) does anyone seriously believe that the volume of mortgage “purchase” applications (applications for the purchase of a home) during the week that included Thanksgiving reached the same level seen during June and July, the peak of the home selling season?

Why doesn’t the MBAA simply admit that they have lots of noise when seasonally adjusting their data during the holidays?

Are they just trying to benefit from the regular distortion?