Newsflash: People don't want to borrow money when rates surge!
Seriously, dude.
According the Mortgage Bankers Association, mortgage applications for the week ended June 26 dropped 18.9% ... the lowest reading since November 2008.
Interesting, isn't it? Right back to some of our darkest credit hours.
In my opinion, this is very bad news for the housing recovery. And it's one more reason for people to start begging Washington to manipluate rates yet again. The magic number -- according to all our favorite real estate cheerleaders -- is a 30-year fixed that begins with a "4."
No, not 40% ... that will probably come later once everyone realizes just how much money we've created out of thin air. =^)
Meanwhile, all indicators are pointing to worse-than-expected job losses when the official number is released this Thursday.
So I ask you, dear reader, how exactly is housing supposed to be bottoming right now? How are all those $400K and $500K houses going to move off the market?
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