Yesterday it was existing home sales off double digits. Today it’s new home sales for July also off double digits with a fall of 12.4%.
The Commerce Department just reported July new home sales at a seasonally adjusted rate of 276,000, way below the expectations for a rate of 334,000 sales.
Even record-low and near-record-low mortgage rates have failed to spark demand for housing in recent months. The average rate on a 30-year fixed mortgage fell to 4.55% in the week ended Aug. 20, the Mortgage Bankers Association also reported today.
Mortgage applications rose for the fourth straight week last week, though applications for refinancing once again made up the bulk of growth. Refi applications accounted for a huge 82.4% of all applications last week.
I’m beginning to see a pattern here, I think. Recession coming, taxes must be cut. Good times arrive, don’t raise taxes it will cause the good times to end. Next recession comes taxes cut again. Good times return, mustn’t raise taxes and end the good times. The logical conclusion I must draw is that with enough business cycles taxes must eventually go to zero.
As to government making better use than we can of our money, it depends. I’d rather have the government financing the space program which led to cell phones than individuals spending the money dining out. No corporation is wealthy enough to spend the time and money to create the Internet. Shareholders would complain during the 20 to 30 years necessary.
As to mandated redistribution of wealth, all government actions and inactions affect some redistribution of weath. I just don’t see how taxing people who have little or no money is going work out. Only people with money can pay taxes if you think about it. It’s not a drive to punish anyone, you rob banks because that is where the money is.
It just seems to me, that the poor and those on welfare, even if they are 10% of the population don’t have the political power to influence those who set up the welfare programs and assistance. Look hard enough and somebody with money gains when welfare is increased and those are the people with influence.
Do you folks have a fb fan web page? I appeared for one on twitter but couldn’t uncover one, I would really like to develop into a fan!