For home buyers, Mortgage Demand is at all time lows

This article talked about the recent increase in mortgage applications. It increased by 7.3% in a week. The week before this one, mortgage applications actually fell by the same amount, meaning that this week put us back to where we were two weeks ago. According to the articles, the share-of-all cash home sales have been falling for almost two years now. The large mortgage companies have relaxed their policies lately, but to no avail. A good reason for the demand being so low is because houses are much too expensive in the United States these days. People don’t make enough money in order to buy these houses that construction workers are building. It doesn’t help that all the new homes being built are massive McMansions that cost a lot of money to buy, and can put a young couple very quickly in debt. Or even an older couple for that matter. The houses are too expensive for the average amount of money Americans are earning these days.

 

http://www.cnbc.com/id/102254636

 

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