CHICAGO (MarketWatch) -- The number of mortgage-loan applications for home purchases dropped to its lowest level in 14 years last week, the Mortgage Bankers Association said Wednesday. Application volume for mortgages to purchase a home sank a seasonally adjusted 3.1% for the week ending July 9, compared with the week before, pushing volume to its lowest since December 1996, the MBA said. http://www.marketwatch.com/story/mortgage-applications-to-buy-homes-hit-14-year-low-2010-07-14 Green shoots.
They should bounce back. Auto sales fell off of a cliff after cash for clunkers ended and then began to rebound nicely. I expect the same effect w/houses after the end of that silly tax break.
That's what happens when free money is taken away. Comparing this to cash for clunkers is wrong, yes car sales have rebounded but I know people with terrible money skills still able to go out and least a brand new car for little down and $199 a month. You can have a part time job and still be able to afford $199 a month, having a part time job to afford mortgage payments, insurances, taxes and all the other fun things that come with owning a home is a different story all together.
Government will grant green cards to anyone in the world that buys a house in the US Thus, the Rome Empire will fall down rather slowly not as fast as it should be. They are the rulers and the elite, they feed of the system which they do not want it to collapse so fast.
House prices should drop to meet average wages correct? If Average US wages are 40K homes should not cost 500K right?
How about this? Sure can't be parking a 45k pick up truck in front of a 125k house. Just won't look right. OR Parking 2 vehicles worth 100k in front of a 200k house. Too ghetto. So on the flip side house price can't match wages they match auto prices. just yakking though.
It's not just prices. Residential RE is all about the financing. People with good credit, good jobs, assets, etc...can't get financed or its a pain in the ass to qualify. Self employed? Get ready for a anal exam going back at least 3 years. I swear, as a group banks have to rank as some of the dumbest people on the planet. I recentlty read a story about someone buying a house that was turned down because of an unpaid $14 bill from 9 years ago. They finally agreed to write a check, but no one knows where to send it.
The government is telling us, "the economy can be kick-started back into gear.. if we just get the right stimulus". That's total BS! No more likely to "ignite" the economy than to ignite a sustainable fire by pouring gasoline on cold ashes.