Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).

The FOMC held the line on the federal funds rate this go round which didn’t surprise anyone. Here is the WSJ’s interpretation of the FOMC press release (here’s the actual):

I don’t think housing hasn’t been fully accounted for in the economic slowdown, and despite the Fed’s somewhat sanguine views, which may change later this year. Sales concessions in lieu of price drops are likely tempering the housing number stats nationwide.

Purchase mortgage applications have been generally flat (They increased this week.) yet home sales are about 20%+ below the same period in the prior year.

Why is that? Perhaps one reason is the general tightening of credit. David Berson of Fannie Mae suggests that people are submitting more applications when making a purchase. [Note: Berson’s link lasts one week. After 5/13/07, go here and search for his 5/7/07 post.]

Tags: ,

One Response to “[Getting Graphic] Fed Holds The Line, Mortgage Applicants Fill Dotted Lines”

  1. The Fed has been relegated to a do nothing bunch of misfits. They are damned if they do, and damned if they don’t. If they lower rates they add more fuel to a bubble that is blistering hot and ready to explode. If they raise rates, they pour water on the fire and quickly usher in a recession (which is coming anyways).

    So their philosophy is do nothing, cover your ears, and say “LaLaLa.” We’ve seen their resolute desire to keep the dollar strong and we also know how much they love credit. Heck, even Greenspans infamous speech championing ARMs…in retrospect that wasn’t too smart was it Al?

    All housing pundits are praying to the Fed that summer will usher in a bounce in housing but little do they realize the force of $1 trillion in risky imprudent loans resetting. Even if rates went to 0% why would you over pay simply because you can make the monthly payment. You can finance a piece of crap car over 10 years for $200 a month but it doesn’t mean that you should. This realization is sinking in and people have over extended themselves to the brink.

    The music is playing and the piper is coming around the corner.

    Doctor Housing Bubble