Welcome to the unique conundrum of an economic mess we are in. Seems as though you solve one problem and you create more. Goes to my “too many artifical inputs, queers the economy” theory–okay so Adam Smith mentioned it first.
Anyway, it looks like rising unemployment and tightening bank credit standards is working hard against the US Treasury plan to push mortgage rates to 4.5 percent, and maybe even 4 percent mortgage rates. MBA says mortgage applications drop 7 percent (17 percent for home purchase loans).
Prediction: Housing prices will continue to drop and the President-elect and Congress will switch gears to job stimulus. (That was pretty easy limb to go out on.)
Follow me on Twitter: @billrice. Let me know your thoughts on the current and future mortgage market.
(photo credit: OctopusHat)
About Bill Rice