Ar_home_b_search
 

According to the MBA (The Mortgage Bankers Association) mortgage loan applications have fallen again. Despite incredibly low interest rates (4.83% average for 30 year fixed) and despite the continuation of the housing tax credit, home buyers seem to have vanished. The seasonally adjusted Purchase Index has now declined for six consecutive weeks and is currently at the lowest level in more than a decade.

 

It appears that concerns that the tax credit would do little more than steal future purchasers may have been well-founded. And while we now have a revamped housing tax credit that includes existing home owners, there seems to be little excitement over the program.

Money sucked into vacuum

Perhaps more buyers would be stimulated to purchase if they had jobs and if it truly appeared that the economy was in recovery.

Source: Mortgage Bankers Association

 

 

The Housing Guru: The one source for all your housing questions

 
Post is included in group: 1st Time Buyers
Post is included in group: Active Rain Newbies
Post is included in group: Dedicated Bloggers
Post is included in group: Politics And Real Estate
Post is included in group: The Ninety-ninth Percentile

9 Comments on Did The Tax Credit Suck All The Buyers From The Market?

NOV
19
2009
167,244 Points 3 Featured Posts Called Shot Master

Actually, I've been busier this month (with folks who weren't expecting the tax credit to be extended) than I was in the late summer and early fall.
8:09am • #1

Good Morning John,

I don't see the "If A & B, then C" correlation. I fully agree that employment is key to our rebound (A). But I don't see where the tax credit (B) is stealing future buyers, so that's why purchases are off(C).

I think if (A) is resolved, (B) will aid in recovery,not detract from it. While we may not always agree, I always look forward to your posts.

 
8:33am • #2
421,594 Points 76 Featured Posts Called Shot Master

Julia - That's great. Of course sales vary around the country; you're fortunate to be in an area of continued activity.

Pat - Most, including the governent, have agreed that the tax credit would stimulate some future buyers to purchase now, and the hope was that the market would stabilize by the time those buyers would have been in the market.  However, we should all agree that there is a limited number of potential buyers, and until new households are formed, we have that limited number from which to draw.

 
8:40am • #3
134,188 Points 4 Featured Posts Outside Blog

John,

What a concept!  Jobs!  Real paying jobs, not "you want fries with that?".

There is a way to get out of this mess and Fast.  I've written about it but it has received no traction, both here and on other blogs.

Seems we're all talk and no action.
10:01am • #4
421,594 Points 76 Featured Posts Called Shot Master

Mike - Until things get much worse, few politicians or consumers will be motivated to action.
11:05am • #5
156,572 Points

John, it really is that basic. If people had secure jobs they would be spending, and stimulating the economy.
11:19am • #6
421,594 Points 76 Featured Posts Called Shot Master

Jon - And if it's that basic--which it is--why can't the politicians get it?
11:36am • #7
224,448 Points 22 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

I've wondered the same thing, John.  It seems the government is doing everything they can to stimulate the economy....EXCEPT create jobs.  We use to be strong in manufacturing...those jobs went overseas.  We need to go back to basics...we need to create products that not only we can use and manufacture ourselves, but can market to the rest of the world.  We could learn a thing or two from China.
7:32pm • #8
421,594 Points 76 Featured Posts Called Shot Master

Lina - Strangely, much of what they do the Chinese learned from us, and now we ignore the lessons we shared.
9:32pm • #9

What does the graphic say?

Leave a response…

(optional)
What does the graphic say?
 
Jm_const_full_photo_for_ar Rainmaker_large

John Mulkey, Housing Guru

Waleska, GA

More about me…

TheHousingGuru.com

Address: P.O. Box 910, Waleska, GA, 30183

Office Phone: (678) 493-3432

Cell Phone: (404) 310-6015

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog

Find GA real estate agents and Waleska real estate on ActiveRain.