Demand for new mortgage applications has continued to be extremely low following the expiration of the original tax credit. It has been consistently running below the very depressed 2009 levels through January and into February. This is consistent with many buyers having moved their purchases forward to take advantage of the initial tax credit that was expected to expire at the end of November. The implication would be that demand will be especially weak in 2010 and therefore that prices will resume their decline.
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1 comment:
The aftermath of the bubble will take a long time as the deleveraging still continues.
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