Article Image
IPFS News Link • Housing

Housing Hubris: Mortgage Apps Plunge Despite Homebuilder Euphoria

• https://www.zerohedge.com, by Tyler Durden

As Kara Cox recently wrote at WolfStreet.com, having lived both in the Bay Area during the dotcom explosion and NYC during the MBS explosion, I know a thing or two about financial bubbles. Or at least how they feel in the moment: akin to being at a frat party at 2 am. Everyone is spewing garbage but thinks they are a genius, and the only way to make sense of it all is to drink up or take yourself home.

That's bubbles.

Source: Bloomberg

As Christophe Barraud wrote earlier in the week, coupled with a shortage of homes for sale, low mortgage rates are supporting housing prices. On Tuesday, the S&P CoreLogic Case-Shiller index (20-City Composite) soared 13.27 percent in March (up from 12 percent in February). In the meantime, the S&P CoreLogic Case-Shiller index of national property values climbed 13.19 percent YoY, the biggest jump since December 2005. Furthermore, the FHFA (Federal Housing Finance Agency) purchase-only price index rose 13.9 percent YoY in March, the largest jump on record.


http://www.thelibertyadvisor.com/declare