U.S. Housing Market Mortgage Purchase Applications Running Out Of Time by Doug Short

The article and chart from Doug Short shows that wages have been declining. In Fact it shows median wages have declined to 2005 level. following the decline is mortgage applications. Both wages and mortgage application peaked at the end of 2006, What the chart doesn't show is the huge rise in the median price of a house. The median price of a house has rose 14% nationally. In Florida where I live prices rose over 20% in 2013. With house prices rising and wages on the decline house sales will decline in 2014 if one of two things do not happen soon. Either the twenty percent of people who are not looking for a job anymore find a good job or prices of houses must decline. If income remains the same most sellers will bot be able to find enough qualified offers to float the market.

by Gene Hoffman

U.S. Housing Market Mortgage Purchase Applications Running Out Of Time by Doug Short

For 2013, one of the main stories in housing was the cool down in existing home sales numbers over the second half of the year, in spite of the relative strength in GDP. What was the main reason for this? Follow the data and the answer appears. When interest rates spiked we did not see the mythical sideline home buyer rush to the market place. Rather what we saw was a collapse of the mortgage purchase application index.

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