Inquiring minds want to know how you can have a housing recovery when mortgage originations are at all-time lows. The bright bulbs on CNBC certainly aren’t inquiring. The Ivy League economists at the Fed aren’t inquiring. Wall Street is making bucket loads of dough with their buy to rent scam, so they aren’t inquiring. If it seems too good to be true, it’s too good to be true. There is no housing recovery. There has been a price recovery engineered by the Fed and their Wall Street owners. It benefited them and them only. The stock market isn’t the only rigged market.
Mortgage Originations Plunge To Lowest On Record
Submitted by Tyler Durden on 04/07/2014 10:45 -0400
New mortgage originations fell over 23% month-over-month and a stunning 47% year-to-date according to Black Knight (formerly LPS). As they show in their detailed presentation, with a 65% year-over-year drop, new mortgage originations are at their lowest since their records began and what is perhaps more concerning is prepayment speeds signal further declines are ahead and the ratio of serious deterioration to foreclosure (along with huge numbers of loan mods due to reset) suggest the housing market is anything but recovering fundamentally with the average loan in foreclosure now 2.6 years past due.
But apart from that – prices are up so that must be good right? as affordability for the average joe collapses.
