We’re All in a Race to the Bottom – Mr. Practical
People’s conception of deflation is false, created by sophists in government. Deflation corrects all the imbalances and debt loads of the massive inflation (excess bank debt) that’s occurred for 30 years (really since the inception of the Fed). Deflation lowers prices, just what the average guy would want. But sophists in media and government cry “it will create mass unemployment” to scare the general public about deflation. This isn’t correct. As prices come down, including price of labor (the government gets out of the way of supporting artificial labor prices through extended benefits), labor will increase faster than anyone thinks.
Most will blame the banks. Fine. But don’t forget the Fed/government/corporate complex that created and used the excess credit to create massive imbalances and great wealth for a small segment of the population. But also don’t forget the US consumers who for years has lived beyond their means.
Realtor Chief Economist Stands By Optimistic Forecast – WSJ
It must not be easy being Lawrence Yun. At least not in times like these.
Are Home Buyer Tax Credits a Mistake? – WSJ
The tax credit could have other data-distorting effects. Median home prices, for example, could continue to rise as the mix of homes shifts to higher price points. If there are fewer sales, but more high-end sales, that could produce a continued uptick in median sales, even as sellers everywhere lower their prices. In July, homes priced above $500,000 represented 10.8% of all sales, up from 9.8% one month earlier.
Brand New Foreclosure Numbers Reverse MBA Survey’s Bright Spots – Diana Olick
We’ve been noting the improvement in new delinquencies as a sign of recovery for several months, but all this new data turns that tenet on its head.
Home Foreclosures Fall, but Mortgage Delinquencies Rise – NYT
But the group’s chief economist, Jay Brinkmann, said any conclusion that the improvements would continue was premature. “It’s more of a hope than anything at this point,” he said.
NY Fed Report on Household Debt & Credit – The Big Picture
Percent of Mortgage Debt 90+ Days Late by State
The Plunge in July New Home Sales Was Not Due to the Expiration of the Tax Credit – Center for Economic Policy Research
May, not July, was the first month in which contracts would not qualify for the tax credit.
Scarcity of jobs puts more at risk of foreclosure – SF Chronicle
“Housing is certainly not going to help the recovery,” said Michelle Meyer, a Bank of America economist. “It threatens to hinder it.”
Home loan rates drop yet again to record low - LA Times
The mortgage giant’s weekly survey said the average rate that lenders were offering on the 30-year loan was 4.36% during the week that ended Thursday, down from 4.42% a week earlier and 5.14% a year ago. Borrowers would have paid 0.7% of the loan amount in upfront lender fees.
“Home sales…home sales…home sales…they fell off a cliff!”
