How much longer can the myth of a housing recovery remain alive in the mainstream media’s narrative? The smoothed average of Mortgage Applications in the US fell to its lowest since September 2000 this week. Mortgage applications have slumped for 9 months… as mortgage rates have declined notably… but still we are told ‘rates are just too high’. And yet, bullish market protagonists are convinced rates are due to rise (and the bond market is wrong) – one can only imagine the slump if that should occur…