August sales dipped well below what expectations and below normal monthly moves. Total sales down 4.8% month to month led by a much steeper drop in the South by 6.6%. Those are the regions where home prices have jumped the most. The medium sale prices nationally was up 4.7% from a year ago but it was at 6% in the south and over 7.8% in the west. The midwest was at 1.5%. Now Realtors point a very weak demand among 1st time home buyers who have a harder time saving for a down payments. And beating credit score requirements. FHA is usually their loan of choice with a low down payment but the nations big brands have all stepped out of the business because they keep getting sued by FHA. Chase mortgage which is the nations second largest mortgage lender is not even the top 100 anymore in new FHA origination. When we look at FHA it's really the servicing that Chase mortgage bank is concerned about. Servicing in the last couple years with new regulations which literally amounts to 13,000 pages of these new regulations that's about 5 and a half feet tall that all come in primarily focused on default servicing. Do Chase mortgage even want FHA loans anymore? FHA loans are down by 5-20 FICO requirements and you only have to put 3.5% down. That's sub prime lending which Chase is not in the sub prime business. Now Chase will do some FHA loans but only with much higher FICO requirements and they charge much more! So in the long run borrowers wouldn't want them. While meanwhile yesterday in a speech from Ginnie Mae's President and Ginnie Mae's services & FHA loans was talking about all those new independent lenders. He was requesting more money to police those non-bank lenders doing these loans but so far congress has not agreed.