If the trend in rising unemployment continues, It seems there are going to be alot more foreclosures on the horizon. This is really scaring me as it should everyone else :eek: http://news.yahoo.com/s/ap/20081205/ap_on_bi_ge/home_foreclosures
I live in Southbeach. Good thing I didnt buy a home yet. Who knows when the real estate market will finally level off a bit down here. Should i ask a tarot card reader?...LOL
What we do know now is that home affordability is at an all time high (combination of price and mortgage rates), and mortgage applications tripled on the last read. It is still just one point, but mortgage rates have dropped like a rock and will probably drop even further. Home ownership is once again very affordable, and the market is predicting a very good year ahead via the home builders index.
How exactly is a home affordable when there is little security in the job that is required to maintain the mortgage payments? That is if the person even has a job.
Not sure what you are looking at. House price ratio to income is still much higher than historical levels. This bubble will take a long time to wind down.
As long as the job market continues to deteriorate, there will be more pressure on homeowners. However, there are signs that government fiscal spending, Federal monetary easing and leveraging, and greater home affordability as well as much better refinancing opportunities will mitigate this situation. Homebuilding stocks have been performing very well based upon these possibilities.
Factoring current mortgage rates, which are near historic lows, make homes more affordable. Plus, the Feds, once Obama is in office, have plans to lower rates even further, as well as renegotiating current adjustable mortgages. Bush is only in office another month or so. A trader and investor has to look beyond this horrendous period in our history.
Bondtrader, you sound like Kudlow and his "sowing the mustard seeds" mentality... The stock market is on a dead cat bounce in my opinion. We'll see what happens 6-12 months from now as to what the story really is....