by Calculated Risk on 9/11/2007 11:37:00 AM

This Reuters commentary has some interesting statistics: Fed hazard is recession, not an immoral bailout: James Saft

Lehman Brothers figures show non-agency mortgage security issuance falling to $15 billion in August, down from $41 billion in July and $70 billion a year ago. And rates are much higher, up by 0.85 percentage points since June for prime loans larger than Fannie and Freddie's $417,000 limit.

And on mortgage applications:

Washington-based Campbell Communications carried out a survey of 1,744 mortgage brokers between August 23-31, according to Realty Times. The survey found about 33 percent of purchase loans did not come through, against 4 percent in 2004.

Even so-called prime borrowers had their closings cancelled 21 percent of the time.

This is another indicator that home sales declined sharply in August (see here and here), and probably means Mortgage Equity Withdrawal (MEW) also declined significantly (probably impacting consumption later this year).