Thursday, June 21, 2007

Mortgage applications fall

After last week’s sharp increase in interest rates, mortgage applications fell by 3.4% this week. This sounds logical to me, but industry officials seem to be surprised that activity hasn’t increased now that interest rates have stopped rising. And all the talk about “near-historic lows” in interest rates sounds all too familiar and unrealistic, given recent activity. Economists keep repeating that all is good like a broken record, in the face of all evidence to the contrary.

Now that the spring season obviously failed to bring around the “rebound” everyone had been expecting, there’s talk about a coming improvement in the remaining summer months, as owners and builders keep cutting prices, etc., etc. Face it: the Real Estate market will not all of a sudden “rise and shine” because someone says it will be so. It will be several months before any improvement takes place.

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