Cash And Tarry: Mortgage Applications Plunge At Fastest Rate Since 2009

In the 'old normal' a spike in interest rates would have sparked an avalanche of 'rational' home-buyers and refinancers to apply for mortgages for 'fear' of the 'never-to-be-seen-again' rates disappearing. It seems, however, courtesy of a Bernanke-trained market, that this surge in rates has pushed many to the sidelines (mortgage applications slipped 8.8% WoW and -23% in the last 3 weeks), we presume waiting for the omnipotent-one to save the day yet again. The year-to-date shift in mortgage applications is now the worst since 2009 and the divergence between home sales and application for a mortgage is growing wider every week (reminding us of another euphoria and exuberance-driven unreality divergence).

Worst YTD drop in mortgage applications since 2009...

 

which appears to be indicating all is not well in the cash-pumped housing market

 

Clearly not predicated on anything but an easy money grab for a fast buck. It seems the argument that if the fast-money buys it, the slow-money will follow is not working out - instead it is just making it less and less affordable for the average person (again)...