How Can We Have a REAL Real Estate Recovery, when mortgage applications are falling and values are rising? Who is buying these homes, and what are their intentions?

Mortgage applications tumbled during the week ending Nov. 29, sinking 12.8% from the last report, the Mortgage Bankers Association said Wednesday.
Similarly, the refinance index also dropped 18%, hitting its lowest level since the beginning of September 2013.
The purchase index dipped 4% from the previous week after recording a slight fall in the last update.
Overall, the refinance share of mortgage activity fell again and now represents 63% of all applications filed, down from 66% a week ago.
The 30-year, fixed-rate mortgage with a conforming loan limit increased to 4.51% from 4.48%, while the 30-year, FRM with a jumbo loan balance edged up to 4.49% from 4.48%.
Furthermore, the 30-year, FHA rate escalated to 4.17% from 4.14%, and the 15-year FRM rose from 3.52% last week to 3.56%.
Meanwhile, the average contract interest rate for a 5/1 ARM fell to 3.09% from 3.18%.