The average commitment rate for a 30-year fixed rate loan declined to 5.04%, down from 5.16% the previous week according to the latest Freddie Mac report.

The lingering problem that no stimulus can solve is a spiraling combination of consumer insecurity and square footage asking prices that are now out of reality with the repricing of real estate in the Metro NYC region.

We are about to experience a very quick catch-up in price deterioration like many other parts of the country earlier in the cycle. This phenomena will also likely prevent any recovery here until long after the rest of the country. Affordability is no longer relevant in this environment since it is a comparison of purchasing characteristics over the past few years. The data points from these past few years have to be purged from any valid comparison.

The bottom line: There is no free lunch! Not even in Hoboken.