Now the fun starts. I hope that real estate & mortgage brokers out there have had enough business to survive through the summer months. Even with historic low rates, mortgage applications have fallen 27.1 percent during the month.
Hmm…can we thank the expiration of the government tax credit for this drop?
Some would claim that the tax credit did boost housing activity. But others might argue that all it did was pull forward sales transactions, so it didn’t add much new volume into the system. Net result: taxpayers money is transferred to homebuyers, but no new real activity in the marketplace.
What am I seeing? One metric that I use (not very scientific) is that I can get a good idea what future sales will look like based on my internet sales leads. I hope this unproven sales analysis stays unproven, because I have seen a major drop off on internet sales leads in the last two weeks.
File Under: Food Stamps.