Via Lati: New U.S. home construction climbs on new demand and defaults are down in California and across the country. In California, notices of default fell 10.2% from the prior quarter and 31.2% from the same period last year.
The strength in housing is partly a supply situation, but also Bernanke's new money printing is starting to leak into the system.
The blister is starting to reappear.
ReplyDeleteOne of my employees just got a call yesterday from his mortgage lender(less then 7 years after he filed bankruptcy) to tell him they will re-fi his house at 3.7% fixed....
ReplyDeleteI'm getting daily pleas to borrow money from a variety of sources to purchase equipment for my business.
I'm seeing availability of cash all of a sudden the last couple of months...for cheap too.
Price increases are a comin'.....
Will you ever acknowledge the following?
ReplyDelete#1 The national average for foreclosing on a home is 867 days, up from 631 days last December.
#2 In California it now takes 1,072 days to foreclose on a home.
#3 The banks are refusing to foreclosing on homes so they can manipulate the inventory as long as possible, goose prices higher, and avoid BK!
I am sorry but, you lack a sufficient database to argue with me.
Have the notices of default fallen because of the increase in refinances which is just an extension of the home loan and not due to a healthy economy. It seems if this is the case then all we are doing is extending the agony of a slump and not creating real wealth. And indeed mr Wenzel, you are right that it seems the money is leaking into the economy, making people feel refinancing can help them keep their house. They'll only keep it up to the point that they continue to pay the overextended loan.
ReplyDeletehttp://ycharts.com/indicators/mortgage_originations_refinancing
Yes, housing starts are up and defaults are down. However, home prices are still in the toilet and will remain there for the foreseeable future, in my opinion, specifically because of all the new housing starts. There are way too many homes in this country. The last thing we need is new ones being built. Most of the big homebuilding corporations should have gone bankrupt during the housing collapse, but the bailouts and all the stimulus helped to prop them up. These are zombie companies, just like the big banks.
ReplyDeleteThe local long island bankruptcy lawyer wasn't about adamant about the news, though. He said it was just a precursor to inflation.
ReplyDeleteDatas from online mortgage lead like this says the same thing too. It was unstable and unmanageable at times.
ReplyDelete