Chart: Zero Hedge
Posted on 08/21/2013 7:52:14 AM PDT by whitedog57
According to the Mortgage Bankers Association (MBA), mortgage applications declined 4.56 from the previous week.
mbastata082113
Most of the decline in mortgage applications was refinancing applications. They fell 7.72% from the previous and have fallen since May 1st when Treasury and mortgage rates began to rise.
mbarefirates
Mortgage purchase applications rose 1.2% from the previous week. And purchase applications have fallen since May 1st despite today’s report.
mbapurchasefreddierate
Existing home sales rose faster than expected at a rate of 6.5% versus the expectation of 1.4%.
ehs082113
Of course, 60% of home sales are all cash and many are foreign and domestic investors. Here is a chart showing the spread between existing home sales and mortgage purchase applications.
ehsmbap082113
What’d they buy, a handful of $200 houses in Deeee-troit?
Do you mean to tell me that people use debt when it’s cheap enough, and cash when debt is too expensive?
Do you mean to tell me that, just like 1990, foreign investors are buying US real estate because it looks like a better investment than most other real estate around the world?
Do you mean to tell me that tens of millions of boomers are selling their homes and buying smaller, less expensive reitrement homes for cash?
Do you mean to tell me that boomers are buying homes for their grown children who can’t afford them on their own?
Knock me over with a feather...
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