by Dave Kranzler, Investment Research Dynamics:
RealtyTrac’s data shows that sales of lower priced houses, those most likely to be first-time purchases, have “fallen through the floor. It’s the clearest demonstration of a first-time buyer affordability gap.” And without first-time buyers there will be no buyers able to move to their second home and so on up the tiers. (Link)
Mortgage purchase applications dropped 5% week over week two weeks in a row, for the latest week’s report (Oct 24). Bloomberg was uncharacteristically spin-free in its assessment: The big drop this month in mortgage rates has yet to raise demand for purchase applications which, in the October 24 week, fell a sharp 5.0 percent for the second straight week. And the trend for purchase applications is suddenly moving lower with the year-on-year rate now at minus 15 percent.
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