Typically the summer months are the busiest time of year for home sales. But when the Home Buyer Tax Rebate expired it motivated buyers and sellers to move in the spring. That is all good, except now we are looking at a gaping hole in the market.
The market now is moribund. Pending home sales are at all time lows and now the demand for mortgages are scraping 13 year lows.
We have sucked all the life and energy out of the housing market to get some of our tax money back.
While real estate has always had ebbs and falls, there was a consistency to it. Now we have broken even that with millions of agents, brokers, vendors, and mortgage companies looking at activity drying up during what is typically the busiest time of the year.
That is not the sign of a healthy market.
Demand for loans to purchase U.S. homes sank to a 13-year low last week, and refinancing demand also slid despite near record-low mortgage rates, the Mortgage Bankers Association said on Wednesday.
Requests for loans to buy homes dropped 3.1 percent in the week ended July 9, after adjusting for the Independence Day holiday, to the lowest level since December 1996, the industry group said.
Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent. via MSNBC
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Good information for new Real Estate agents.