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[Getting Graphic] Fed Holds The Line, Mortgage Applicants Fill Dotted Lines

Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).

The FOMC held the line on the federal funds rate [1] this go round which didn’t surprise anyone [2]. Here is the WSJ’s interpretation of the FOMC press release (here’s the actual) [3]:

I don’t think housing hasn’t been fully accounted for in the economic slowdown, and despite the Fed’s somewhat sanguine views, which may change later this year. Sales concessions in lieu of price drops are likely tempering the housing number stats nationwide.

Purchase mortgage applications have been generally flat (They increased this week. [4]) yet home sales are about 20%+ below the same period in the prior year.

Why is that? Perhaps one reason is the general tightening of credit. David Berson of Fannie Mae suggests that people are submitting more applications when making a purchase. [5] [Note: Berson’s link lasts one week. After 5/13/07, go here and search for his 5/7/07 post [6].]