they are trying very hard to bail out the sub prime mortgage area. Foreclosures continue to rise at a record pace. For some reason though after reading todays news on foreclosures the homebuilders are up yet again, some of these homebuilders are up 5% in the last few days. The only way homebuilders make money is by building houses, now with foreclosures up and more houses available for sale how can the homebuilder continue to build when there is already a large supply of houses on the market. I just dont understand how this is going to work out as 1.5 Million go into foreclosure. Its not over yet, some are saying the sub prime mortgage problems are nothing to worry about, that it will not put any problems on the economy, who are we to believe. We could be in a recession now and not even know it.
it sounds nice that some banks will {try} to roll you into a 30yr. fixed rate, but how many are financially able to if all they could qualify for was sub-prime before. nice P.R. but B.S. bgp
Foreclosures are a really small percentage of the overall market, and truly, if you research it you'll see that the Foreclosure rate has basically been very depressed until recently because we've been in "boom times" for the last few years. Though the newspapers keep reporting it as "worst foreclosure rate in 3 years" or "foreclosure rate doubled in last two years", you have to see where it was and view it from a historical perspective for it to make sense. But that doesn't sell newspapers when you have a headline that reads, "Foreclosure rate near historical average". Ask yourself...how many people do you know personally who are being foreclosed? Unless you live in a few areas in the U.S., you likely don't know any. My feeling is that a few rats on-board have little to do with how the ship sails. Its more about weather and water (jobs and interest rates). Steve
The Fed is using this as cover to not raise rates, its all rigged just buy the index futures. The fix is in dont be scared.
"Foreclosure rate near historical average". Ask yourself...how many people do you know personally who are being foreclosed? Unless you live in a few areas in the U.S., you likely don't know any. Your missing the BIG Picture.....F#ck the greedy first time buyer who bough more home then he could afford.......the BIG issue is the Banks that are holding the mortgage on homes that are down 30% from where they loaned to them....Benanke could care less about the homeowner being foreclosed on ...the problem is the bank is foreclosing on say a 400k loan....for a house that is selling now for 280k...now times that by a couple thousand per bank and you got a big problem.