Housing Recovery? : Mortgage Applications Drop to 20 Year Low

Mortgage Applications at a Twenty Year Low

JM Bullion
Buy Physical Silver Online

Real Estate News

Podcast Summary

0:00-5:35 – Intro

Mortgage Applications Down & Mortgage Department Layoffs and the Media Myth of a Housing Recovery

5:35:11:37 Discussion of the Fed and their view of the weather and its impact on the economy. Discussion of the banks and their recent announcement to layoff workers in the mortgage division. QE is not even creating jobs in the banking sector!

Discussion of bankers going missing and a Financial Times Gold manipulation story gone missing. Discussion of the media’s complicity in spinning economic news. Louis compares the initial jobless claims language in an AP headline from August 2013 to last week’s NY Times near identical headline– “Unemployment Filings Fall, Signaling Steady Job Gains”. Mortgage applications dropped to a twenty year low yet the media insists on using the term “recovery” to describe the housing market. People are getting fired by the thousands in the mortgage sector, mortgage applications are down to 20 year low, there are consistently 350K unemployment claims each week and yet the recovery story persists and the stock market roars to new highs! Usually bull markets reflect a growing economy not some tepid recovery stalled by bad weather.

11:37-12:55 The Fed Presidents are still talking taper despite signs that the economy is not improving. The Fed is projecting, despite the slow start to the year, that the economy will improve during second half of the year – a false prediction they make every year.

Recovery Leads to …. Recovery!

12:55-18:20 Discussion of the weather and its (minimal) impact on the economy. Discussion of who is buying homes- low volume of purchasers taking out mortgages and all cash investors who are exiting the market. Prices are rising not due to increased demand but rather because of very tight inventory. Louis and Ryan explain why its necessary to understand what the Fed does. Discussion of the impact of underwater homeowners on housing inventory.
Definition of recovery- a temporary state. Recovery should lead to expansion, not more “recovery”.

18:20-21:50 0 Ryan talks about whether its a good time to buy a home. Discussion of the differences between the housing boom of the mid 2000’s and today’s housing market.

21:50-26:21 As home prices rise, creating a “wealth effect” people can take equity from their homes. This equity however is false given that if more homes were on the market home prices would be far lower. Discussion of the law of small numbers and how it relates to the housing market.

26:21-29:50 Discussion of the lack of first time home buyers and the economic circumstances of millennials. Millennials are renting more than buying, reflecting a cultural change.

29:50-43:48 How the Fed’s and institutional investor intervention in the housing market removes true price discovery and market participation. Discussion on buying a home as a residence vs. as an investment. Don’t speculate where you live.

43:48-47:37 Who will buy US Treasuries when the Fed stops QE? Perhaps the EU? U.S. citizens under a mandatory myRA plan?

47:37- Credit tip of the week-cell phones and your credit score.

Mortgage Applications Fall to Twenty Year Low

Get Free Updates From Smaulgld.com

Subscribe to Smaulgld.com and get the free In Case You Missed Itweekly email as well as updates and analysis on gold, silver, real estate and the economy.

Also get the free report “Twelve Key Differences Between Gold and Silver” when you subscribe.

Further Reading:

Initial Jobless Claims

The False Housing Recovery of 2013 and How it Unravelled

Fed Presidents Continue to Talk Taper

Royal Canadian Mint

Please visit the Smaulgld Store for a larger selection of recommended Kindles, books, music, movies and other items.

Or you can support Smaulgld.com by making all your Amazon purchases through the search widget below:

*DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.

The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.

The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.

Post Navigation