Indy
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Mortgage Applications Plunge 23%
| Quote From Source: | In yet another sign of the economic crisis, the Mortgage Bankers Association said Wednesday that mortgage applications plunged 23% last week.
| | Click source url to view entire story. |
Source: http://money.cnn.com/2008/10...x.htm?postversion=2008100108
If this continues for even a few more weeks without a recovery it will have a severe impact on the housing market. That means more people cannot move their homes and prices will continue to fall. How much worse can this get?
"I think God gives us children so death won't come as such a disappointment." - Two and a Half Men |
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chrisisasavage
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I'd love for houses to fall more here. I still see crap like (New homes, in the low 800's) ALL the time. |
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FatalWishes
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| Quoting Indy - posted on 10/1/2008 at 08:49 |
| Quote From Source: | In yet another sign of the economic crisis, the Mortgage Bankers Association said Wednesday that mortgage applications plunged 23% last week.
| | Click source url to view entire story. |
Source: http://money.cnn.com/2008/10...x.htm?postversion=2008100108
If this continues for even a few more weeks without a recovery it will have a severe impact on the housing market. That means more people cannot move their homes and prices will continue to fall. How much worse can this get?
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Well, for some areas of the market, the houses fell below replacement costs. Notice I said some areas. Those markets have bottomed. Apparently the word is out and the entire nation housing market is going to do the same thing. There have been houses for sale on my street for...well I don't know how long.
The problem I see is they won't free up credit for property. It is a problem that is feeding on itself. As values plunge, the banks lose more money yet won't open the credit to stop the bloodflow and inject some stability into the market.
Now what they will do is allow you to put 40-50% down which is what many banks require now. Most people do not have that much cash. Even a 100k home is gong to require 40-50 thousand down. Anybody searching for a 1400 sq ft home that is worth 100k does not have that much cash.
They should take the warning labels off of everything and let stupidity sort itself out.
Please check out our new website at www.globalwarmingisnotreal.com |
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ghoster
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Plus the jobs are not there, construction is dead, and that industry usually leads the way out of any downturn. Manufacturing is almost gone from this country. Paper shuffling is dying, and rental properties? Ha!! So what is the job base that will allow anyone to sign on to a 30 Yr mortgage with confidence? I do not see any stability in any market or any facet of this market. Small business is going to get crushed in this. How many nail salons and other "small business" are going to be going out of business with the employees unable to find work.
The local water store owner told me his nut per month is; 1500 for electricity, 2500 franchise fee. So he needs to cover that before he eats. That is a lot of water, and he said that his traffic is down more than 50% so far. I see lots of store fronts empty out and the strip malls are becoming ghost towns these days. Lots of office condos and small office buildings are empty too.
Supposedly 50% of the auto dealerships are in trouble and might close. This just loads up the unemployment lines and these folks have some skills but no where to find employment. Nope this is just getting started and hasn't even hit the pace for the downturn. No matter how much the congress critters shout and bluster the end is coming for this economy and the sooner it gets sorted out the quicker it will recover to some level of stability. Until that day just hold on to your hat, this ride is going to be rough. 
As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron."
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DanG
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... this is just getting started and hasn't even hit the pace for the downturn...
Sad - but true. |
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doppelganger
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"Cheer up: Here comes a recession"
http://articles.moneycentral...-here-comes-a-recession.aspx |
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chrisisasavage
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Let's hope that's all we get. |
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ghoster
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Could this be the end of this particular fiat money system? If the whole she bang comes down then won't that mean a new system for transferring money from the taxpayer to the wealthy?
As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron."
- H.L. Mencken |
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posted on 10/1/2008 at 08:49
