First-time mortgage applications have fallen for five straight weeks and Y-o-Y activity is now down a painful 35%. Add to that a 42-point fall in the NAHB Housing Market index for March to 30, the lowest level since 6/12 and the biggest decline in the Index’s 35-year history. With March housing starts down 22%, it’s clear the housing industry, which had been going gangbusters, is suddenly very troubled.