Despite the surge in "seasonally-adjusted new home sales", un-seasonally-adjusted mortgage applications tumbled 8.5% this week, the biggest drop in 3 months as the modest January bounce has been almost entirely unwound. This pushes the broad MBA mortgage applications index down to near its lowest in 14 years. However, the home-purchase index continues to collapse. Purchase applications are down 30% from their May highs plunging in the last few weeks to their lowest level since 1995. Must be the weather, eh? Or is it like Bob Shiller warned yesterday, the unwind of "bubble thinking," especially as "gains are slowing from month-to-month and the strongest part of the recovery in home values may be over."
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What this fails to mention is that all cash purchases have surged. I think it's good that mortgages are no longer being handed out with little consideration for ability to repay.
ReplyDeleteWho do you think is buying with cash?It's the chinese and other foreigners not americans.
ReplyDeleteActually 6:32 after paying off the mortgage on my house (in 15, not 30 years) and saving diligently my wife and I were able to recently buy a second (vacation) home in cash. And what a terrific feeling. Two houses, both paid for and now banking money for retirement. We're not rich, both work but also never bought anything we could not afford, never carried credit card balances, and lived within a budget.
ReplyDelete6:52 PM
ReplyDeleteyou want a cookie?
Awww, no education, no skills from heres want to point the finger at foreigners…..
ReplyDeleteNot too shabby 6:52.It sounds like you set your goals before you even got married and stuck to them.
ReplyDelete