Foreclosure-Gate Fallout: Mortgage Applications Just Plunged 10.5%

Neubarth

At the Ballpark July 30th
Nov 8, 2008
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Foreclosure-Gate Fallout: Mortgage Applications Just Plunged 10.5%


Is that the floor collapsing? ? ? ? ?

From the Mortgage Bankers Association:

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The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending October 15, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 10.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index also decreased 10.5 percent compared with the previous week. This week’s results do not include an adjustment for the Columbus Day holiday.

The Refinance Index decreased 11.2 percent from the previous week.


Read more: http://www.businessinsider.com/mortgage-....0#ixzz12u132Ya4


As I have stated hundreds of times starting years ago, the economic collapse would be a slow motion falling house of cards. To see an index like the one that tracks mortgage applications fall this severely is like seeing a whole bunch of cards fall at one time.

Note that the 10.5 percent fall was preceded by an 11.2 percent fall the week before. Everybody is afraid to buy as they have now seen what happens when house values go down. You can lose thousands on a house. In fact, for most home owners you can lose your retirement. Many people would sell their houses to fund their retirements. Now, they can not do so.
 
Individuals should look at houses as homes not investments.

And home prices are still to high considering the economic situation.
 
Individuals should look at houses as homes not investments.

And home prices are still to high considering the economic situation.
You are absolutely correct.

I could tear down my house and completely rebuild it with all new material for half of what I could sell it for today. That is amazing when you think about it. Why are people buying houses at these outrageously inflated prices when they could build them for half the cost.

We are going down people. Trillions of Dollars are just vanishing into thin air!
 
Trillions of dollars that never really existed anyway.

I got a $1,000 dog last week.
I traded 2 $500 cats for it.
 
Old people always get doomish, they long for the past economic boots and are bling to the new ones.
 
Old people always get doomish, they long for the past economic boots and are bling to the new ones.


So, would you buy my old house for $500,000 or would you build an entirely brand new one for half that price????????????
 
Old people always get doomish, they long for the past economic boots and are bling to the new ones.


So, would you buy my old house for $500,000 or would you build an entirely brand new one for half that price????????????

I seriously doubt there's a market where a builder can make 100% margin, but I guess it's possible in a small market.

Our economy is producing right where it was pre recession and will continue up like it allways does. Yes the buggywhip manufacters will try to hold on, meanwhile apple can't make enough Iphones.
 
It's not just financial risk that is depressing the market, title uncertainty is also depressing purchases.
 
If you're underwater, those trillions of dollars do exist. They are on the balance sheets of lenders and you're not going anywhere as a holder of one of those mortgages unless you come up with the cash to close the gap, or walk away from it.
 
Umm lack of jobs could have a wee bit to do with it as well.
Don'tcha think?
Not really, for most of the country a dropping of RE prices by 75% would mean large numbers of employed homeless would take up the slack. I know at least two fulltime employed homeless men who could and would rent if local housing prices declined by that much. There is a huge pool of employed men and women living in cars, with relatives and so on who could and would establish households at lower RE prices.
 

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