Worst Month For Mortgage Applications Since 2009 Driving Mass Layoffs

Chart: Bloomberg

Worst Month For Mortgage Applications Since 2009 Driving Mass Layoffs

This morning’s 11.5% week-over-week plunge in mortgage applications is the fourth week of fading demand in a row as it appears the bloom is very much off the rose of the second-coming of the housing bubble. This makes it the worst plunge in mortgage applications since June 2009 and the lowest level of activity since December 2011. Wondering how this is possible? We explained in detail here but this collapse in mortgage demand fits perfectly with Mark Hanson’s insights that a number of “large private mortgage bankers had mass layoffs last Friday to the tune of 25% to 50% of their operations staff.” This all feels very deja vu all over again.

As Mark Hanson notes,

This morning I was made aware that three large private mortgage bankers I follow closely for trends in mortgage finance ALL had mass layoffs last Friday and yesterday to the tune of 25% to 50% of their operations staff (intake, processing, underwriting, document drawing, funding, post-closing).

This obviously means that my reports of refi apps being down 65% to 90% in the past 3 weeks are far more accurate than the lagging MBA index, which is likely on its’ way to print multi-year lows in the next month.

Rest here…

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4closureFraud.org

Comments
One Response to “Worst Month For Mortgage Applications Since 2009 Driving Mass Layoffs”
  1. BOBBI SWANN says:

    Simply put it’s because most of the sales in the real estate market is being dominated by “cash” buyers, and 90% of those are investors. There’s no layoffs in the real estate broker field – they are having one heck of a good 2-month stretch with all of the competition for those investor (foreclosed) home sales. And, to top it all off, those investors are now driving the prices up with the onslaught of multiple offers on homes! Yes, they are correct…it’s deja vu all over again!

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