mrbill

So How Good Was Housing Data in March?

"FHA is reporting rising defaults."

"Conclusion: Neutral"

"The Office of the Comptroller of the Currency of the U.S. last week detailed rising mortgage delinquencies throughout 2008."

"Conclusion: Neutral"

Talk about spin.

"Case-Shiller data demonstrated another month of breathtaking declines in home prices."

"Conclusion: Negative."

Why is this bad? Do you have kids, do you want them to be priced out of the market thanks to artificially low interest rates and other government subsidies such as tax credits? And what effect will low interest rates have on the cost of living for everyone including home buyers in two to five years? Is it better to pay $1 million for a $500K home if you get an interest rate of zero? Artificially low interest rates and subsidies are great, you save a couple of hundred on your monthly mortgage, but end up paying several hundred more on higher property taxes, food, energy, and fuel.