Mortgage Applications Plunge Further - Near 19 Year Lows

Tyler Durden's picture

The past 5 weeks have seen mortgage applications crumble a further 16% - their biggest such drop in 14 months as the index for home purchase applications hovers close to its lowest level since 1995. Non-seasonally-adjusted, this is the worst start to a year in over a decade. Must be the weather?


Mortgage Applications drop close to 19 year lows...


Worst start to a year for at least a decade


Chart: Bloomberg

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NoDebt's picture

And Ferrari has a record year.  Hopefully you get the picture what's going on here.  Gutting the middle class.

Broad averages are meaningless.  We now have two economies.  One for the ultra wealthy, one for everyone else.

Silverhog's picture

Going to be hard driving those Ferrari's in streets littered with rocks and broken bottles. 

buzzsaw99's picture

and zero clearance. an armored suv for every day, the ferrari to park out front for show.

balolalo's picture

"Going to be hard driving those Ferrari's in streets littered with rocks and broken bottles. "

....and Molotov cocktails.

Croesus's picture

@ Silverhog: 

Nah, y'all taxpayers will get an increased tax bill in order to fix dem dar roads...

(Their words, not mine). 

TrumpXVI's picture

It's gonna' be murder running those Ferraris on roads destroyed by potholes that cannot be repaired properly because we're OUT OF MONEY.

The_Ungrateful_Yid's picture

Top 20% are doing well, the rest are just peasants.

DeadFred's picture

Why get a mortgage when you can pay cash? Mortgages are so last decade.

firstdivision's picture

The middle class shouldn't feel too left out.  There is a gutting going on at the higher levels as well, just not as broad as it is in the middle class.  Upper middle class is really feeling it.

corporatewhore's picture

Two economies fer sho.

Pimps and hos don't blink an eye when ordering upscale glass replacements for their landrovers or jags.  1000 for dat back glass? Get er done.

Suburban housewife trying to save money will use generic glass from a junkyard in her trimmed out SUV.  She thinks she's better than THOSE people.

Cant wait to see how this movie ends.

Sudden Debt's picture



Winston Churchill's picture

10% price cuts on the home bulletins I rec'd this AM
in S.Florida.
Here we go again.

new game's picture

some late to the punch bowl flippers are in for a ride back to the bottom - short sale to themselves - rehypothicated...

Winston Churchill's picture

Two I'm watching right now.They got greedy asking too much,
now they can't sell after 5 months.

new game's picture

dito-told the muther fucker i'll be at the courthouse step a waitin...

i deal direct as former broker. no middlemen or no sale-try it!

new game's picture

attitudes will change fast. smart sellers will under price so as to get in front of the downward pull.

too early, though...

RSloane's picture

I have a question, WC. I know someone who has been trying to buy a house in S Florida for months, yet he keeps gettng overbid by people with cash upfront, to the point that people are willing to buy the home for more than its listed. In what price range are the homes you are selling?

Winston Churchill's picture

I'm not selling anything.Sold my RE last year.
I did bid on a house,and got outbid by another cash buyer.
The market down here has been very frothy, but is rapidly
going flat/down.Tell your friend to hold off,prices overshot.
Enormous shadow inventory being held off the market, a realtor
client of mine even admits privately that we are in a huge bubble that is already deflating.Bide your time.

Kasperfx's picture

thats nothing more then a fairytail. homes here are not moving from $400 and gets worse as you go up to the 1 million + marks, their all sitting for years  . yes i hear realtorstrying to bulock me but i asked them if sales are so good why are you driving a 8 year old car ? 

Kasperfx's picture

S florda needs to cut a lot more then 10%, S Florida seems to be trying to confuse people into thinking its california the prices here are insane and it's obvious as there is nothing at least were i see selling. it's all smoke and mirrors

buzzsaw99's picture

the koolaide is strong in s. florida. insane wish prices. bunch of people caught falling knives. there is no market, there is only unsold albatross inventory.

new game's picture

did a quick search under 100k just north of tampa; tarpon springs and new port richey and fucken eh, many, many to choose -some with complete remodels.  i supose if ya wait  long  enuf they will be back under the banks control...

Headbanger's picture

For what!?  To live in a fucking swamp full of bugs and a bunch of old geezers driving golf carts all over??

Fuck Floriduh!

new game's picture

agree, considered it when -45 degree wind chills were blowing. texas bound next week...

CheapBastard's picture

Actually look at almost any neighborhood on Zillow and you'll see lots of red [red=houses for sale].

Kasperfx's picture

and rentals, this place is flooding with rentals and all seem to be reducing or very negotiable on their insane ( but decreasing) listing prices. A lot of funds and donald trump wanbee's are learning the hard way. 

-.-'s picture


Seems to coincide or at least make it so that I am not entirely surprised...

new game's picture

can anybody offer an opinion on the texas housing situation?

AynRandFan's picture

Prices around Austin are rising fast.  Everything sells in a hurry.  Prices are up near The Woodlands because Exxon moved their hq just up the road.  I'm in west Tx, and prices are flat unless you are close to the drilling boom in S. Tx.

new game's picture

thank you as i am heading to dallas first, then midland/odessa area.

spent a month in the woodlands up towards clevland area. couldn't do it.

the houston energy corridor is going nuts and dragging prices along.

too many assholes for me.  but austin is a different story, alot like mpls/st paul,

but liberal madness is taking hold.  looking for the majority with good ole-fashion conservative values.

and of course an income stream. place to buy some land with privacy and small home paid for in cash.

Blano's picture

Yeah one of the few disappointing things about Texas so far is there's way more liberals down here than I thought.  The liberal coasts/illegal onslaught is in full swing.

That said, here's a little info for ya.  Despite the fact that Abortion Barbie is from Ft. Worth, methinks that's the place to aim for a more conservative bent than Dallas.  Maybe even west or south of FW if you want land.

j0nx's picture

Austin will turn Texas into another Colorado. I know Texans disagree with me but I have witnessed it happen in Virginia from Nova as the rest of the state gets dragged along with them. Just a matter of time Texans. You heard it here first.

pickupthatcan's picture

You're hardly the first.  We're further away from being blue than the libtards wish.   

Dallas sucks.  FSA galore, the politicians are communists and the food sucks.  East of Dallas, you can find land for between $3-6k per acre.  Buy 50+ acres and no town, city or county can inact any legislation to prevent you from shooting anything you want to on you own property.  Full auto machineguns are legal and encouraged here.

WakeUpPeeeeeople's picture

Why Austin you ask? Because there are 150 new swinging dicks moving here every fucking day, most from Ca with their fucking Ca mentality. Last summer it was 170 per day, alot of them without a job because they heard/read that Austin was the place to find their fortune. Silicon Valley is moving to Silicon Gulch.

-.-'s picture

I am born and raised in Austin, and I can tell you that this city seems highly leveraged in its projects. Not only that, but the housing situation is also no better whatsoever---you've got overvaluation of homes and lots in areas that merely seem "attractive" to the swarms of Californian's who are amassing here daily (and have been for 2 years now). This creates a contagion effect in the real estate market here, increasing rents across the city starting from the central zip code 78701, then on to 78702, 78703, 78704, 78705, 78745, 78749, 78738, 78731, 78735, etc. 

Smoke and mirrors? Austin is perfecting that today. You should have been here before the Frost Bank Tower was built downtown---to the real Warehouse District by Republic Square. 

Condo here; Condo there; average rent downtown per 850 sqft. apartment (or condo) is $2,400 and going up due to six more 300+ occupancy residential constructions. Oh, and now Austin has been introduced to the (more expensive (and yet underutilized)) Rapid Metro Bus Routes. 

We (the fucking city council (Gotham?)) are making Austin, Texas beautiful to Californians, Portlandians, or really anyone with enough money to catch a wet elephant on fire. We are altering a city into a business, almost too well---no, wait, cities are businesses with a structure already in place to make sure that investors want in while it is Bullish. Ausitn, Texas is Bullish indeed and, in my opinion, inflated. Everything is a god damned commerical now in my hometown, but it is humorous because it can't last unless Google or Silicon Valley just move to Austin (another drought state---don't Californian's follow historic climate maps? Drought conditions? Water scarcity?). 



Welcome To The Spectacle, Here Is A Straw To Have With Your Internet

-.-'s picture

Oh, and it is the first time that I am witnessing too many people in a town where the roads are actually NOT LONG ENOUGH FOR ALL THE CARS TRYING TO DRIVE ONE CITY BLOCK DURING THE HOURS OF 4:30 PM AND 6:00 PM. And the fucking morons don't know how to drive around here either! Intersections are filled-up and left blocked by vehicles remaining in the intersection when your light turns green! This is going to get good, I am telling you that Austin, Texas is going to be a FUN, FUN, FUN TIME!

new game's picture

great music scene. biking big. mayor is sign of money transfer to the votes arriving...

grab onto your wallet!

Pig Circus's picture

A 1% increase in the 30 year fixed and the whole facade collapses. Some fucking recovery.

j0nx's picture

I don't think so. Mid 6's to 7's will be required before prices start to drop in high demand urban areas. I'm starting to come to the conclusion that we will never be buying another home in a desirable location in the DC area. Took me 5 years to reach par and unload the underwater hovel in the section 8/illegal infested manassas park area. Patiently waiting for single family homes in Fairfax to drop 30% but something tells me it aint going to happen...

yrbmegr's picture

It certainly could be the weather.  We've had several weeks of pretty bad weather, which will prompt people to put off buying homes.  It could also be that more and more home purchases are being made in cash.

Winston Churchill's picture

Yep, its the cold weather here in S. Florida that"s causing price drops.
Happens everytime it plunges below 70F.
Who knew ?

yrbmegr's picture

Perhaps I missed something.  I thought the statistics cited were national statistics, not South Florida statistics.

DavrosoftheDaleks's picture

My wife and I have been looking at homes in the expensive Main Line burbs of Philly all winter long.  Oddly enough the inventory is low for homes put up by resident-owners, but the inventory of bank foreclosed houses is at an all time high.  Regardless we are hanging back a bit until we save more $ as both of us aren't confident in this economy.  If it was 2005/2006, we would have already owned a house by now, but the economy today still feels like crap.

NCSpurs's picture

Since 1988, over 9,000 people have been slain on the streets of Philadelphia, affecting every neighborhood in the city. To put that deadly toll in perspective, during the length of U.S. combat operations in the Iraq war, 3,517 American troops were killed in action - and 3,113 people were killed in Philadelphia. Why would you want to spend a ton of money to live in that shithole? I thought Zerohedge had bright readers.

new game's picture

ah yeaaa! seek causation!

the bastards!

theliberalliberal's picture

Cant fill forms with frozen ink

Maybe the fed will stop printing too?

Stuck on Zero's picture

Warm the pen in your armpit and sign away.  We're all going to get rich.