Housing market problems
by John Seiler | December 28, 2013 1:41 am
[1]CalWatchDog.com stories repeatedly have warned that the optimism over California being “back,” as Gov. Jerry Brown insists, may be overblown. That doesn’t mean a recession is approaching, only that policymakers ought to be careful.
Now this from AP[2]:
The number of Americans applying for mortgages has fallen 63 percent since a May peak, reflecting a cooling housing market and higher borrowing rates.
The Mortgage Bankers Association says applications fell a seasonally adjusted 6.3 percent last week from a week earlier. Applications are now at a 13-year low.
The drop-off follows a 1 percentage point increase in mortgage rates from historic lows last spring. The average for a 30-year mortgage is 4.47 percent, according to mortgage buyer Freddie Mac.
That means the mortgage application rate is even lower than it was during the 2007-09 housing crash.
- [Image]: http://calwatchdog.com/wp-content/uploads/2013/12/housing-market-wolverton-cagle-Dec.-23-2013.jpg
- from AP: http://abcnews.go.com/Business/wireStory/us-mortgage-applications-tumble-13-year-low-21323369
Source URL: https://calwatchdog.com/2013/12/28/recession-ahead/