Credit expansion is today’s ‘high powered money’ and, as always, the private sector is pro cyclical, and this series just fell to a 6 year low.
And when it slips into reverse it can get ugly quick.
By Diana Olick
October 16 (CNBC) — Applications for government mortgage products dropped to a six-year low last week, as negotiations to end the U.S. government’s partial shutdown and avert a debt default rocked back and forth between progress and deadlock.
While total mortgage applications inched higher by 0.3 percent week-to-week, the increase was driven entirely by a 3 percent rise in refinances, according to a weekly survey by the Mortgage Bankers Association. Mortgage applications to purchase a home dropped a wider 5 percent.
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