Housing Goes Into A Tailspin...Mortgage Finance Index Plunges

This post connects with my post below, which argues that the Fed/Govt will be forced into massive monetary and fiscal stimulation or risk having the economy drop into a brutal depression.  The mortgage application index fell 12.2% on an "adjusted" basis and 21.1% unadjusted.  The purchase index dropped an adjusted 5.7% and plunged 16.3% unadjusted.  The seasonal adjustments incorporated  the holiday-shortened week last week.  The purchase index is 30.4% lower than the same week last year.  Get the picture?  Here's what the MBA had to say: 

Purchase applications are now 35 percent below their level of four weeks ago, as homebuyers have not yet returned to the market following the expiration of the homebuyer tax credit at the end of April...Although rates remained essentially flat, refinance applications dropped this past week for the first time in a month. Despite the historically low rates, many homeowners have already refinanced recently, remain underwater on their mortgages, have uncertain job situations, or have damaged credit following this downturn, and therefore may not qualify to refinance.

Here's the link:  Look Out Below.  Not sure this news requires any commentary, other than do not be misled by Banana Ben's theatre of the absurd today when he testifies in front of Congress.  Gold/silver should be aggressively accumulated on all pullbacks.