This is why the Dow Jones Home Construction Index is down 2.7% right now. Many of the individual homebuilders are down 3-4%. Even if the jobs report were bona fide, all those newly minted bartenders and waitresses will not be buying a home.
Mortgage purchase applications have declined in 7 out of the first nine weeks of 2015. Based on seasonality, they should be increasing every week…Just so you don’t think my view on the housing market is a lone voice out there:
The complacency in evidence today is not dissimilar to that seen during the sub-prime era, when both Mr. Bernanke and Ms. Yellen admitted they did not see the problems coming. The real estate market is now accustomed to an ever increasing level of happy drugs. Now that the Fed has clearly come to the end of providing additional support, withdrawal is going to be quite painful (LINK)