There are lots of interesting charts in this report at Mortgage News daily, none of which are very encouraging signs for the U.S. housing market. Mortgage originations are at a six-year low as the share of all-cash purchases (primarily from investors) appears to be quickly reaching a peak (if they haven’t already).
This graphic was intriguing as it follows many recent reports about the return of home equity loans, said loans enabled by higher prices courtesy of all-cash investor purchases.
It would have been nice to see 2003-2005 on this chart as well since that’s when things were really getting started in the successful reflation effort by the Fed following the bursting of the stock market bubble a few years prior.
That’s what’s kind of funny about ‘Ol Greenie’s comments in the last post, namely, that the bursting of the 2000 stock bubble is seen as a manageable bubble, but, really, only because the successful inflation of another bubble mitigated the impact on the broader economy.