Welcome to the world of government manipulated housing.
Buyers rushing to beat the then-deadline, for the tax credit for new home buyers, pushed resales of U.S. homes up by a 10.1% in October to a seasonally adjusted annual rate of 6.10 million, the National Association of Realtors estimated Monday.
The 6.10-million rate was the highest since February 2007.
In the months ahead things might be a bit different, given the rush is over. Mortgage applications for new purchases plunged to a 12-year low last week, and MBS origination activity correspondingly ran at low levels through the first half of the month. So we are likely to see a significant pullback in coming months housing market data.
Also keep in mind that a lot of this housing has been guaranteed by a completely mad FHA financing that could crash land at anytime.
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