Foreclosures starts rise 16% Y/Y in May to 109,051, the first on-year increase in 27 months as...

This news story has 10 comments:

Register or Login to rate comments »

Tack Comments (9398)
 
Lest anybody thinks this is a sign of more bad news in housing markets, consider this item, which somehow escaped SA Currents: http://bloom.bg/MQHILH
14 Jun 2012, 06:29 AM Reply Like

maudie Comments (411)
 
Pull quote from Bloomberg article: “People are worried about falling home prices and they’re worried about the economy,” said DeKaser. “If they can afford it, they’re paying down their mortgages instead of buying things".
Nope, no bad news here. Move along.
14 Jun 2012, 08:25 AM Reply Like

User 462216 Comments (95)
 
Tack,
knew this before I read it, talked to my bank. The vast majority of financing is refinancing like the article says and not new purchases. Which it also states is bad for the economy because people are saving instead of purchasing things. But it is good for household balance sheets and better for America in the long run....just deleveraging. This is the first year I am starting to see more foreclosures in better areas....not a good sign. Prices have flattened out but that is because banks are doing more short sales. Better for the bank, less losses and savings on mitigation. Foreclosures will take another 3 + years to clear. My bank offers 2.54% on 10 yr. loan with 20% down and 3% on a 15 yr or 3.79% on 30 yr. They tell me not many takers. Twenty percent down is the problem and selling their home for many is the other problem. The recovery will be a slow process just the same way we did not get into this mess over night. Back in 1998 I told the realtors in my office that we have a lot of foreclosures in the pipeline for years to come.......they didn't understand........ they do now. If it wasn't for the Govt. programs we would have at least 30% less sales just my guestimate. Many buyers puting down 3 to 5 percent only. Some are getting money from the city or the county to help with the sale. The last 3 houses that I sold this year all used 14k from the city. If they live there for 10 years they don't have to pay any of the money back. ( 0 payment second liens) It does look like a great time to buy. I'm almost thinking about it. But this is the first time that I don't have a bunch of houses in over 20 some years and I'm living in an apartment. I like the lack of responsibility for rite now. Its not the end of the world, its just a slow down. People tend to apply the brake at the deleveraging curve.
Enjoy your day !
24 Jun 2012, 06:51 AM Reply Like

maudie Comments (411)
 
Pull quote #2: Home prices tumbled for six straight months through March to the lowest level in a decade, 35 percent below the peak prices of the housing boom, according to the S&P/Case-Shiller price index of 20 U.S. metropolitan areas.
14 Jun 2012, 08:29 AM Reply Like

maudie Comments (411)
 
Pull quote #3: The U.S. economy probably will grow at a 2.2 percent pace in 2012, the third year after the end of the recession, according to the median forecast of 93 economists surveyed by Bloomberg. That compares with a 3.9 percent average expansion rate in the third-year period following the 1982, 1994, and 2001 recessions. In 2013, the growth rate probably will be 2.4 percent, according to the economists’ average estimate.
14 Jun 2012, 08:30 AM Reply Like

maudie Comments (411)
 
Pull quote #4: “Paying down mortgage debt is bad for economic growth -- putting your money into your house usually means you’re spending less,” said FBR’s Miller
14 Jun 2012, 08:33 AM Reply Like

maudie Comments (411)
 
Pull quote #5: Retail sales in the U.S. fell in May for a second month, prompting economists to cut forecasts for economic growth as limited job growth and income gains hold back consumers. The 0.2 percent decrease matched April’s drop that was previously reported as a gain, Commerce Department figures showed yesterday in Washington.
14 Jun 2012, 08:36 AM Reply Like

maudie Comments (411)
 
Pull quote #6: Annual increases in national income slowed to $581 billion in 2011 from $693 billion in the prior year, according to the Bureau of Economic Analysis. The first quarter’s $127.7 billion gain puts 2012 on course for a $510.8 billion increase, the lowest since income dropped in 2009.
14 Jun 2012, 08:37 AM Reply Like

Tack Comments (9398)
 
maud:

Notice that mortgages are getting paid down, equity is increasing, and economy has been growing, even if not as fast as we'd like, not contracting. It's important to look at aggregate totals, not a claim that some subset can't afford to buy anything.

And home equity increases are just future buying power aand better balance sheets.

But, hey, if you think building equity is bad, feel free. Such a view is rather ironic, given all the persistent howling about debt expanding on all fronts.
14 Jun 2012, 08:39 AM Reply Like

J 457 Comments (869)
 
Paying down mortgage: Its called throwing good money after bad for many. Paying down a mortgage as your neighbors short-sale for thousands less than what you owe, and then and foreclose so the bank can sell at a steep lose. Not the smartest move.
14 Jun 2012, 09:21 AM Reply Like