The third chart shows that since around 2007, the correlation between interest rates and mortgage applications is more positive than negative, i.e. rates and number of applications are going in the same direction, mostly down. The spike in applications from around 1996 through 2005 could be attributed to the housing bubble (chart 2), but the failure of the apps to regain an upward move argues against any real recovery for the average, non-0.1%er, person. ~ Ilene
Mortgage Purchase Applications Plunge To 19-Year Lows
Courtesy of ZeroHedge. View original post here.
Presented with little comment because realistically what is there to say about a so-called 'housing recovery' when the volume of applications for home purchases is the lowest since August 1995. Keep believing that lower rates will support home prices… keep believing the Fed's QE worked… or face facts, this is not your mother's housing market any more…
The Recovery…
The long-term…
The transmission channel is officially broken…
Charts: Bloomberg
