We know its 'early' and we should not be judging yet another QE-book by its front-running cover; but the following three charts might give all those hopeful that this time its different some pause for thought on the Fed's actions being anything other than by the banks, for the banks, and of the banks. With refi activity's burst fading, retail mortgage rates having not budged, residential delinquencies rising once again, and average 'approved mortgage loan' FICO score at 750, it would seem the Fed could throw another cajillion dollars at the banks and reserves would just inflate further (along with everything we eat, use, and need), leaving the economy muddling through at best.
Since QEternity was announced, retail mortgage rates have dropped a mere 12bps to 3.39% while wholesale rates are down 30bps (and considerably more at one point)...
[2]
and while there was an immediate knee-jerk reaction to refi (no doubt driven by a massive marketing push from the servicers), it is now fading...
[3]
Is it any wonder it is fading... Average accepted mortgage loan FICO Scores are 750...
[4]
and Resi Delinquencies are rising once again...
[5]
In a nutshell: - QEternity is FOR the 'banks'; As far as the 'people', those who can (refi) have, those who can't won't!
Charts: JPMorgan and Bloomberg