Applications Rise, Purchases Fall

Applications for refinancing mortgages rocketed up 17.1 percent last week to the highest level since May 15, 2009. (When the Fed announced $1.25 trillion in mortgage purchases and rates fell precipitously)

Homeowners that cannot sell their homes at least have the opportunity of taking advantage of the government (tax payer) subsidized low mortgage rates.

Unfortunately the low rates have not helped actual sales which fell 3.4 percent on the week back to 1997 levels.  The following chart shows home purchases. 

Let's hope Obama has another trick up his sleeve to get this housing market back to bubble prices.