Purchase applications are now 35 percent below their level of four weeks ago, as homebuyers have not yet returned to the market following the expiration of the homebuyer tax credit at the end of April...Although rates remained essentially flat, refinance applications dropped this past week for the first time in a month. Despite the historically low rates, many homeowners have already refinanced recently, remain underwater on their mortgages, have uncertain job situations, or have damaged credit following this downturn, and therefore may not qualify to refinance.Here's the link: Look Out Below. Not sure this news requires any commentary, other than do not be misled by Banana Ben's theatre of the absurd today when he testifies in front of Congress. Gold/silver should be aggressively accumulated on all pullbacks.
Wednesday, June 9, 2010
Housing Goes Into A Tailspin...Mortgage Finance Index Plunges
This post connects with my post below, which argues that the Fed/Govt will be forced into massive monetary and fiscal stimulation or risk having the economy drop into a brutal depression. The mortgage application index fell 12.2% on an "adjusted" basis and 21.1% unadjusted. The purchase index dropped an adjusted 5.7% and plunged 16.3% unadjusted. The seasonal adjustments incorporated the holiday-shortened week last week. The purchase index is 30.4% lower than the same week last year. Get the picture? Here's what the MBA had to say:
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It's probably time to resurrect this lil' collection of quotes:
ReplyDeleteMarch 28, 2007: “The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.”
May 17, 2007: “We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”
Feb. 28, 2008, on the potential for bank failures: “Among the largest banks, the capital ratios remain good and I don’t expect any serious problems of that sort among the large, internationally active banks that make up a very substantial part of our banking system.”
June 9, 2008: “The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.”
July 16, 2008: Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.”
Why does anyone still listen to this guy?
Also, what do you have against bananas? LOL!
Redneckistanian
US Financial Crisis: Ambac Warns of Default as Bondholders Organize - CNBC
ReplyDeletehttp://www.cnbc.com/id/37589022
Some "major" news concerning silver was due this week that was going to grab the "attention of wall street and the white house." Dave any idea when it's coming out?
ReplyDeleteAnonymous: I am aware of a lawsuit against JPM that is supposed to hit. Jim Willie spilled the beans in his newsletter 2 weeks ago. I don't know when or if it will actually be filed.
ReplyDeleteHopium: great link - i missed that. Thanks!
Red: I posted your comments - those are precious
Some lender still have stable rates for their mortgage and home loans. That's why there are still several home buyers that finance and buy a house using mortgages.
ReplyDeleteVisit this link to get buy to let mortgage advice