Without tax credit, home demand keeps slumping

This capital markets are already anticipating what no one is talking about right now - more stimulus. Expect the official rhetoric of more stimulus need to get louder as the elections approach. Currency devaluation has never been the means to economic prosperity, but this will not stop the central planners. Very few options remain to protect the status quo.

Home buying applications sank for a fifth straight week to a fresh 13-year low, the Mortgage Bankers Association said on Wednesday, suggesting that tax credits had robbed more from future sales than expected.

Demand for loans to purchase houses fell 5.7 percent in the week ended June 4 to the lowest level since February 1997, even after adjusting to account for the Memorial Day holiday.

Source: finance.yahoo.com=