Mortgage applications hit a 13-year low
With the tax credit mostly gone, we're starting to get a better sense of what the free market thinks of housing:Mortgage applications to buy a home plunged last week — to the lowest level in more than 13 years — as the housing recovery continued to struggle following the expiration of the homebuyer tax credit, an industry group said Wednesday.
The Mortgage Bankers Association said application for mortgages to purchase a home sank a seasonally adjusted 3.1% for the week ended July 9 on a week-over-week basis, driving the volume to its lowest level since December 1996. On an annual basis, applications for the week were down 43%.
Much of the slowdown has come since the April 30 expiration of homebuyer tax credit. Homebuyers had until that deadline to sign contracts. Congress extended the deadline to close deals to Sept. 30.
The government's latest reading on new home sales plummeted to a record low in May, thanks largely to the expiration of the tax credit.
Here's a graph of mortgage applications since 1990 from Calculated Risk:
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More than 1 million American households are likely to lose their homes to foreclosure this year.
ReplyDeleteWould Be Unprecedented
ouchies!
ReplyDeleteAccording to the graph, mortgage demand is at the 1997 level. That's astounding!
ReplyDeleteThats some bad news! Luckily foreclosures are up 8%!
ReplyDeletehttp://www.marketwatch.com/story/us-foreclosure-filings-rise-8-in-first-half-2010-07-15?reflink=MW_news_stmp
Foreclosure is a big part of the cure. We need a huge dose of medicine. This is very good news.
ReplyDeleteSadly, that dose is getting smaller in some places around here. Realtytrac reported foreclosures by county:
ReplyDeleteArlington -12.7% YOY
Alexandria -25.9% YOY
Fairfax -13.7% YOY
Loudoun -26.8% YOY
P. William -33.5% YOY
DC -64.6% YOY*
Montgomery +3.2% YOY
P. Georges +7.2% YOY
*a bit skewed because last June was a 1 time spike in DC. Real numbers are likely only down 30% YOY.
Since when did VA start posting budget SURPLUSSES???
ReplyDeletehttp://www.washingtonexaminer.com/local/blogs/capital-land/cantor-praises-virginias-budget-surplus-98460714.html
An amusing blog entry from 4 months ago:
ReplyDeleteAnonymous said...
The Fed will be pulling out of the MBS arena. Looks like some of you may be in for a surprise so stay tuned!
March 19, 2010 3:53 PM
BWAHAHAHAHAHAHA!!!!!
"Thats some bad news! Luckily foreclosures are up 8%!"
ReplyDeleteIts so cute that my statement got a bunch of guys who bought in DC all riled up! I love it. Dance my puppets, dance!
Im gunna see if I can get this thread up 20 or 30 more posts.
Homes = Nasdaq bubble, all the "jumpers" now had better rent them at positive cash flow or they will be waiting 10 years or more.
ReplyDeleteQ: What is something more inflated than the housing bubble at its peak?
ReplyDeleteA: This person's sense of their own importance:
"Its so cute that my statement got a bunch of guys who bought in DC all riled up! I love it. Dance my puppets, dance!"
Heh. Seriously.
ReplyDeleteMeanwhile, it's pretty entertaining that some folks can't seem to comprehend that there was a bubble, and surplus housing was built--in some areas. In other areas, there's still a shortage.
Now, if only we could take some of those McMansions built in exurban Las Vegas and relocate them in gentrifying DC.
"Now, if only we could take some of those McMansions built in exurban Las Vegas and relocate them in gentrifying DC."
ReplyDeleteI would just be happy if the banks would release the 5.6 billion empty homes in DC/NoVa they have on their books
simple because, banks wouldnt give ppl money to buy properties, if the value of the real estate continue to fall.
ReplyDeleteI would just be happy if the banks would release the 5.6 billion empty homes in DC/NoVa they have on their books
ReplyDeleteLet me rephrase that:
"Now, if only we could take some of those McMansions built in exurban [Manassas/Dumfries/Etc...] and relocate them in gentrifying DC."
Where's "DC/NoVa"? Is that anything like the town of Delmarva?
"I would just be happy if the banks would release the 5.6 billion empty homes in DC/NoVa they have on their books"
ReplyDeleteI suspect you're right about this. I've been looking at real estate myself and it does seem that the foreclosures come on the market at a measured pace. I'm interested in knowing more about the numbers--you've thrown out a wild number, but do realistic figures exist? Where can they be found?
Many now are losing their homes and everything. Solutions are not enough, sad to say.
ReplyDeleteHello, my name is Shanell Robinson and I have my own blog that I write and publish regularly. I'm always looking at other peoples blogs to see if they have some great content I can link. Your blog is great!
ReplyDeletewww.woodbridgerealestate.blogspot.com