Congratulations, Mr. President – you’ve brought us back to 1997:
The number of customers applying for a mortgage to purchase a property fell to the lowest level in 13 years last week, a sign the housing market is struggling without government incentives.
Purchase volume declined 5.7 percent and is at its lowest point since February 1997, the Mortgage Bankers Association said Wednesday.
Overall mortgage application volume, which includes loans for purchases and refinancings, dropped by 12.2 percent during the week ending June 4, compared with the previous week. Refinance volume tumbled 14.3 percent…
A strong pitch is being made behind the scenes for a renewal of the $8,000 home purchase tax credit – the real estate industry is facing complete disaster, and they want their federal subsidy. Never mind that it will make things worse in the long run – the people running the real estate show only care about the next month or two. Fortunately, for them at least, our government seems incapable of looking even a week in to the future, so the credit might well be renewed.
The longer we put off the drop of home prices to actual market value, the worse it will be when we are finally forced to allow it to happen. National bankruptcy is, at most, only five years away – some time between now and then it will become absolutely impossible to sustain current home price levels, and crash they’ll go (personally, I don’t think they can keep it up much longer – but Obama, Bernanke and the boys are determined to keep trying).
This is the change we can really believe in – only its for the worse.
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