WALL STREET FRAUDFEST CONTINUES

Two stories on Calculated Risk http://www.calculatedriskblog.com/ this morning tell the true story of the housing market and the criminal Wall Street Bank syndicate. First is the new applications for mortgages in the U.S. Mortgage rates are at record lows and the number of mortgage applications hit a 15 year low.

The Refinance Index decreased 12.2 percent from the previous week. The seasonally adjusted Purchase Index increased 0.9 percent from one week earlier.
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“Refinance application volume declined for a second week from recent highs, despite rates staying near a 10-month low, while purchase volume remained near 15-year lows,” said Mike Fratantoni, MBA’s Vice President of Research and Economics.
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The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.32 percent from 4.39 percent, with points increasing to 1.30 from 0.88 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

Virtually no one is buying homes today. That means no one is selling homes either. The supply of houses for sale rises by the day. Guess what happens when supply rises and there is no demand?

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