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VodkaPundit

New Home Sales Take a Dive

April 25th, 2014 - 12:12 pm

Uh-oh:

Mortgage lending declined to the lowest level in 14 years in the first quarter as homeowners pulled back sharply from refinancing and house hunters showed little appetite for new loans, the latest sign of how rising interest rates have dented the housing recovery.

Lenders originated $235 billion in mortgage loans during the January-March quarter, down 58% from the same period a year ago and down 23% from the fourth quarter of 2013, according to industry newsletter Inside Mortgage Finance.

All is proceeding exactly as I have foreseen. Which is why I’m drinking my lunch.

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All Comments   (3)
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I think investors are taking a whopping big chunk of the market right now, so mortgage origination numbers may not reflect the reality of housing sales. Investment housing purchases, however, are concentrated in specific areas and price ranges, so it's a bifurcated market.

Investment capital flows are also highly volatile; when there's a better deal out there, the purchases will just stop.
21 weeks ago
21 weeks ago Link To Comment
Lies all lies!!!! Diane Sawyer just told me on the TV that the housing market is on fire. So we got that goin' for us...
21 weeks ago
21 weeks ago Link To Comment
All housing markets are local, like politics. My ex sold her house in three days last weekend here in Cincinnati, Ohio (and it was not a low end home).
21 weeks ago
21 weeks ago Link To Comment
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