Mortgage Application Volume Falls

So I read this article today in Yahoo Finance: http://finance.yahoo.com/news/Overall-mortgage-application-apf-334909391...

After reading such an article, I almost feel like I am living in a foreign land. Well, in some ways I am. The point being, Virgin Islands Real Estate is typically a very different beast than the rest of the United States- at least different than the masses that they write about.

So this articles states: "The number of customers applying for a mortgage to purchase a property fell to the lowest level in 13 years last week, a sign the housing market is struggling without government incentives."

Let's get serious here. How many of the buyers in the VI were reliant upon the government incentives that were being offered. The answer- very few.

The article also states: "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," said Michael Fratantoni, MBA's vice president of research and economics."

Here in the Virgin Islands, 5 of the 7 properties contracted this month are listed over $500K. That is a much higher than the typical ratio, which is more properties sold under $500K than over $500K. That doesn't refute the numbers they are claiming by any means. But it helps you understand the even if the number of applications is less, it doesn't mean that the AMOUNT of money being loaned has decreased- at least to any amount near that rate.

When reading the "doom and gloom" articles online and in the paper, make sure you understand that data can be twisted to look almost anyway you want it. So make sure you see the complete picture before making any judgments.