Applications for mortgages for the purchase of a home plunged at nearly the fastest pace in 9 months this week, dropping to their lowest since the Christmas week 2012 - and lowest since February 2012. Now down over 20% from their May highs, the plunge is a problem - since as BofA's CEO noted earlier:
- *MOYNIHAN SAYS HOME PURCHASES, NOT REFI, BOOST THE ECONOMY
So just another indicator that all is not well in the 'economy'.
What is perhaps most worrisome is that this is the lowest level of mortgage purchase activity for this time of year in a decade.