• About
  • Contact
  • Submit News
Thursday, May 22, 2025
No Result
View All Result
NEWSLETTER
TGE NEWS
  • Home
  • World
    • Business
    • Economy
    • Politics
    • Geo-Engineering
    • Environment
    • Police State
    • Foreign Policy
  • U.S.
    • Federal Reserve
  • Globalist Agenda
    • Secret Societies
    • World Order
    • The Globalists
  • Health
    • Big Pharma
    • Fluoride
    • Food
    • Gmo’s
    • Vaccines
  • Sci/Tech
    • Space
    • Trans-Humanism
  • Media
    • Documentaries
    • Interviews
    • Talks/Lectures
  • More+
    • Ancient Civilizations
    • Astrology
    • Astrotheology
    • Awareness
    • DIY
    • Esoteric
    • Free Energy
    • Hidden History
    • Infographics
    • Knowledge
    • Religion
    • Spirituality
    • Submit News
  • Home
  • World
    • Business
    • Economy
    • Politics
    • Geo-Engineering
    • Environment
    • Police State
    • Foreign Policy
  • U.S.
    • Federal Reserve
  • Globalist Agenda
    • Secret Societies
    • World Order
    • The Globalists
  • Health
    • Big Pharma
    • Fluoride
    • Food
    • Gmo’s
    • Vaccines
  • Sci/Tech
    • Space
    • Trans-Humanism
  • Media
    • Documentaries
    • Interviews
    • Talks/Lectures
  • More+
    • Ancient Civilizations
    • Astrology
    • Astrotheology
    • Awareness
    • DIY
    • Esoteric
    • Free Energy
    • Hidden History
    • Infographics
    • Knowledge
    • Religion
    • Spirituality
    • Submit News
No Result
View All Result
TGE NEWS

Reinventing Feudalism In America: Existing Home Sales Go Up While Mortgage Applications Fall?

by TGE News
12 years ago
19.6k
A A
Reinventing Feudalism In America: Existing Home Sales Go Up While Mortgage Applications Fall?
20.6k
SHARES
41.2k
VIEWS
FacebookTwitter

This week we were welcomed by the news that existing home sales reached a multi-year high.  Good news right?  Depends on where you stand since the stock market continued to react to the potential of the Fed moving slowly away from their unprecedented mortgage experiment. As you know, mortgage rates are now at a multi-year high as well.  It is very clear that this has hampered the ability of your average family to purchase a property since the big money from hedge funds and investors is still fiercely competing for the current inventory in the market.  Big trends do not change overnight.  Yet it is clear that we reached an inventory bottom in March of 2013.  It is also clear that cash buyers are a much bigger portion of our market today (in fact, they might be the biggest player of all).  The real estate game has completely shifted from a stale boring play that tracked inflation to a boom and bust cycle that is fully dependent on the wills of the Fed.  If that is the case, the Fed pulling back even a little is enormous.  The nation is becoming one of more renters largely because low rates have done very little to help out regular families.  The big winners of course are the large investors.  So let us look at the paradox of the current market.

Existing home sales and mortgage applications

The news of rocketing home sales was plastered all over the headlines.  However, mortgage applications are going in the exact opposite direction (of course little was reported on this):

existing home sales and mortgage apps

The median home price in the US is $214,000 and from multiple reports, most Americans don’t have much saved up (definitely not enough to buy a home without a mortgage or even a car for that matter).  This trend simply highlights the massive power being wielded by the cash buying crowd.  Someone is buying these homes and if mortgages are not being used, something else is being used.  The cash buying crowd has always been around but as a small subset of the market.  Today, it is one of the biggest players out there.  The group is big enough to push prices up as it has over the last few years.

The chart above simply adds more evidence to this scenario.  Your regular buyer is being pushed out of the game while investors continue to battle over what inventory is available.  Yet we are now seeing that an inventory bottom was reached in March of 2013:

redfin listings

The trend has been unmistakable.  Since late 2010 available inventory has gone only in one way, down.  That however has changed since March of this year.  Inventory is now creeping up and in some markets, the turnaround is dramatic.  Where is this coming from?  You probably have two groups:

-1.  Investor trying to time a top (including banks)

-2.  Underwater homeowners no longer underwater exiting the game

Coupled with these two groups you also have your regular sellers and the trend has reversed.  The normal crowd is also being pushed out because rates have gone up quickly this year.

Refinancing boost collapsing

The economy has received an ancillary boom courtesy of refinancing activity.  Keep in mind banks have made droves of money from refinancing fees.  Yet with higher rates, the gig is likely up:

refi collapse

It is clear that the jump in mortgage rates has stifled this activity.  Yet this only helps current homeowners (and by the larger trend, home ownership has been falling).  Many investors were buying homes to rent out (this is how you have 5,000,000 people losing their “home ownership” via foreclosure only to exchange them back to financial institutions that have turned around and converted them to rentals).  Without a doubt, many people should have not purchased homes in the last decade.  That is an understatement.  Yet now, instead of fueling the flames for the regular buyer the Fed has given large investors a big incentive to buy.  No reform, just ramping the game up with a different tone.  This is how you can have falling mortgage applications and a significant rise in home sales.

The cash crowd

The myth that somehow the cash crowd was small can be put to rest now:

GS-housing-cash

It is obvious that the cash buying crowd is large and driving many markets.  The big banks are carefully looking at the Fed’s next move because they realize that without low rates, financially strapped US households will not be able to purchase their property for a nice profit.  The bailout was subtle if you can call the Fed’s balance sheet at $3.4 trillion subtle but the big win has gone to banks.  Low rates alone are not enough to save an economy.  The home ownership rate has collapsed and all this focus on housing has diverted our attention from other growth sectors to housing.  Rents and home prices are rising yet incomes are not.  Is this a positive development?

The trend is very clear now:

rental nation

This trend has only continued in the last year.  We are becoming a nation of renters yet home prices continue to go up as banks trade with one another leveraging low rates.  Rising inventory and rising rates will definitely make an impact.  Do you think this kind of cash buying trend is sustainable?

This article was originally published at Dr. Housing Bubble

0 0 votes
Article Rating
Share8255Tweet5156
Previous Post

Hedge funds, insider traders begin dumping Monsanto stock as reality of GMOs sinks in across Wall Street

Next Post

German Government Warns Key Entities Not To Use Windows 8 – Links The NSA

TGE News

Your Source for Alternative News and Information.

Related Posts

Is the Audit the Fed Movement Losing Momentum?
Economics

Is the Audit the Fed Movement Losing Momentum?

04/10/2021
Five Major Banks to Plead Guilty to Rigging Currency Markets
Business

Five Major Banks to Plead Guilty to Rigging Currency Markets

05/20/2015
FDIC Plots a Bank Heist Involving YOUR Accounts
Economics

FDIC Plots a Bank Heist Involving YOUR Accounts

04/27/2015
Argentina and Belgium Accuse HSBC of Aiding Tax Evasion
Economics

Argentina and Belgium Accuse HSBC of Aiding Tax Evasion

04/10/2021
Big Banks Busted Massively Manipulating Foreign Exchange, Precious Metals and Every Other Market
Economics

Big Banks Busted Massively Manipulating Foreign Exchange, Precious Metals and Every Other Market

04/10/2021
Another “Conspiracy Theory” Bites The Dust: UBS Settles Over Gold Rigging, Many More Banks To Follow
Economics

Another “Conspiracy Theory” Bites The Dust: UBS Settles Over Gold Rigging, Many More Banks To Follow

04/10/2021
Load More
Next Post
German Government Warns Key Entities Not To Use Windows 8 – Links The NSA

German Government Warns Key Entities Not To Use Windows 8 – Links The NSA

Subscribe
Login
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Most Read

  • A List of Banks Owned by the Rothschild Dynasty

    A List of Banks Owned by the Rothschild Dynasty

    28794 shares
    Share 11515 Tweet 7197
  • The History of the ‘House of Rothschild’ (Complete)

    27699 shares
    Share 11040 Tweet 6900
  • Wikileaks Is A Rothschild Operation

    25555 shares
    Share 10222 Tweet 6389
  • Secrets Of The Elite: Why Forbes’s Rich List Doesn’t Include The Wealthiest Families On The Planet

    24910 shares
    Share 9963 Tweet 6227
  • George Soros Exposed as a Rothschild Agent in the 1990’s

    23556 shares
    Share 9422 Tweet 5889

Newsletter

Enter your email address to subscribe to our newsletter and receive notifications of new posts by email.

Join 12.4K other subscribers

Latest Posts

  • Yes, A Small Cabal Of Elites Run The World Economy & Governments!
  • How the Geoengineers Make, Amp up and Aim Superstorms
  • Protocols of the Learned Robots of Artificial Intelligentsia
  • David Straight: Awakening Seminar

Site Links

  • Donate
  • Resources
  • Sitemap
  • The Globalists

About Us

Deep independent journalism and contributions about who really controls the world that you will not see in the corporate media.

No Result
View All Result
  • About
  • Contact
  • Privacy & Terms
  • Submit News

Circa 2012 TGE NEWS.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Translate »

Add New Playlist

No Result
View All Result
  • Home
  • World
    • Business
    • Economy
    • Politics
    • Geo-Engineering
    • Environment
    • Police State
    • Foreign Policy
  • U.S.
    • Federal Reserve
  • Globalist Agenda
    • Secret Societies
    • World Order
    • The Globalists
  • Health
    • Big Pharma
    • Fluoride
    • Food
    • Gmo’s
    • Vaccines
  • Sci/Tech
    • Space
    • Trans-Humanism
  • Media
    • Documentaries
    • Interviews
    • Talks/Lectures
  • More+
    • Ancient Civilizations
    • Astrology
    • Astrotheology
    • Awareness
    • DIY
    • Esoteric
    • Free Energy
    • Hidden History
    • Infographics
    • Knowledge
    • Religion
    • Spirituality
    • Submit News

Circa 2012 TGE NEWS.

Discover more from The Global Elite

Subscribe now to keep reading and get access to the full archive.

Continue reading