But what this data ignores are new home purchases,
where while single-family sales have been muted as expected considering
the plunge in mortgage applications, multi-family unit growth - where
investors hope to play the tail end of the popping rental bubble - has
been stunning, and where multi-fam permits have soared to the highest
since 2008. So how does the history of "all cash"
home purchases in the US look before and after the arrival of the 2008
post-Lehman "New Normal." The answer is shown in the chart below.
This should not come as a surprise to regular readers, who saw this
chart, along with our analysis of it last August, as well as the correct
forecast that mortgage origination is slamming shut for virtually all
financial firms. For those who missed it, here it is again.
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