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Home Publications Blogs Beat the Press Plunge in Mortgage Applications Goes Unnoticed

Plunge in Mortgage Applications Goes Unnoticed

Thursday, 03 June 2010 03:35
In the weeks since the end of the extended first time homebuyers tax credit purchase mortgage applications have fallen sharply. They dropped another 4.1 percent last week reaching their lowest level since April of 1997. This deserved some attention since it implies that home sales are falling sharply. This suggests that the price declines seen in recent months are likely to accelerate in the summer.
Comments (3)Add Comment
countrywide to save the day
written by frankenduf, June 03, 2010 8:54
hard to buy a house when you don't get a paycheck- hey, maybe countrywide can start accepting welfare debit cards as collateral?! (i coulda been ceo 5 years ago...
written by izzatzo, June 03, 2010 9:29
Countrywide is the latest in double wide mobile homes, designed by the great financial architect, Tan Man Angilo Mozilo, made to accomodate two families each after foreclosure and eviction by the same person.

This has created a massive substitution effect for lower priced housing which explains the reason for falling house prices going forward. This doesn't show up in mortgage applications because the latest financial innovations require they be purchased with cash, bartered goods or indentured labor for the life of the buyer or mobile home, whichever fails first.
written by Queen of Sheba, June 04, 2010 12:20
Dear Izzatzo;
I live in a mobile home Screw you and the stereotype you rode in on.

I have bought a five-acre piece of property and am planning to build a home on it this fall. I hope the builder is screaming bloody murder by September so I can get afford that upgraded kitchen.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.