Posted on 05/29/2013 7:14:03 AM PDT by blam
Cash And Tarry: Mortgage Applications Plunge At Fastest Rate Since 2009
Tyler Durden
05/29/2013 09:47 -0400
In the 'old normal' a spike in interest rates would have sparked an avalanche of 'rational' home-buyers and refinancers to apply for mortgages for 'fear' of the 'never-to-be-seen-again' rates disappearing. It seems, however, courtesy of a Bernanke-trained market, that this surge in rates has pushed many to the sidelines (mortgage applications slipped 8.8% WoW and -23% in the last 3 weeks), we presume waiting for the omnipotent-one to save the day yet again. The year-to-date shift in mortgage applications is now the worst since 2009 and the divergence between home sales and application for a mortgage is growing wider every week (reminding us of another euphoria and exuberance-driven unreality divergence).
Worst YTD drop in mortgage applications since 2009...
which appears to be indicating all is not well in the cash-pumped housing market
Clearly not predicated on anything but an easy money grab for a fast buck. It seems the argument that if the fast-money buys it, the slow-money will follow is not working out - instead it is just making it less and less affordable for the average person (again)...
(Excerpt) Read more at zerohedge.com ...
See here for charts. Mortgage Purchase Applications actually rose.
So fewer are refinancing?
It actually seems to be picking up around here.
I have to conclude from that second graph that more and more people bought homes for cash, and now the bargains are gone.
Rental income is the new savings account or CD ladder.
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