RECOVERY? Lowest Mortgage Activity Since October 2008, Economic Damage From The Sequester Is Becoming More Clear, And It Could Get Worse
Lowest Mortgage Activity Since October 2008
For the 16th of the last 18 weeks, mortgage refinance activity plunged (dropping 20% this week alone). Since early May, when the dreaded word “Taper” was first uttered, refis have collapsed over 70%.
This is the lowest level of mortgage refinance activity since since June 2009 and lowest total mortgage activity since Oct 2008 – in the middle of the financial crisis.
Who says the Fed didn’t drive all this?
of course – it’s charts like this that are ‘used’ to show that the fall in activity and rise in rates is not impacting sales…
Mortgage apps plunge, refinancing hits 4 year low as rates soar
Applications for U.S. home loans plunged as mortgage rates matched their high of the year, with refinancing activity falling to its lowest in more than four years, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, sank 13.5 percent in the week ended Sept. 6, after rising 1.3 percent the prior week.
GOLDMAN: The Economic Damage From The Sequester Is Becoming More Clear, And It Could Get Worse
Federal employment has been steadily dropping for several months, but a new note from Goldman Sachs economist Jan Hatzius suggests effects of the sequester have now cropped up other economic indicators.
“The first area where sequestration has shown up fairly clearly in the data is personal income, which registered a disappointing 0.1% monthly gain in July, due in part to a 0.5% decline in government wages and salaries,” Hatzius wrote to clients. “The decline was likely mainly due to defense furloughs, which started July 8. Absent the July furloughs, which according to the BEA reduced annualized wages by $7.7bn that month, personal income growth would have just barely been rounded up to 0.2%.”
10 year charging toward the 3% line again! Forward!
There Is Now No Doubt That Rising Mortgage Rates Are Hitting The Housing Market
CHART OF THE DAY: The Complete History Of The Financial Crisis In One Chart
Read more: http://www.businessinsider.com/chart-financial-crisis-2013-9#ixzz2eb7QELtw
Housing vendor index – Philly Housing Index – says same.
The housing recovery is spun by the MSM. There is no housing recovery. It’s 2004 all over again.
Most of the total inventory is hidden in “foreclosure paper work” amongst the banks. Available inventory is a small percentage of what is actually out there.