We all know the storyline about the housing recovery. It has been peddled ad naseum to the public by the MSM, Wall Street, DC politicians, homebuilders, and the NAR.
It is fascinating that Realtytrac’s monthly update on foreclosures didn’t see the light of day yesterday in the MSM. Our housing recovery cheerleader on Calculated Risk didn’t report the info.
Even a Google search brings up NADA.
I wonder why?
Maybe it’s because:
- Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 130,888 U.S. properties in July, an increase of 2% from June.
- The monthly increase in U.S. foreclosure activity was driven by a 6% monthly increase in foreclosure starts and a 4% monthly increase in bank repossessions.
- Foreclosure starts increased from the previous month in 26 states and were up from a year ago in 15 states.
- Bank repossessions increased from the previous month in 29 states and were up from a year ago in 18 states.
Do foreclosures accelerate during a healthy normal housing recovery? Do you think the surge in mortgage rates will be hugely beneficial to this trend? The storyline of recovery has been built upon the fact that things are much better than the darkest days of 2009/2010. It is certainly true that foreclosures aren’t near the rates during the height of the crisis. But, an ongoing annual rate of 1.7 million foreclosures per year during a supposed economic recovery is at least 300% above what would be considered normal during good economic times. The rate of foreclosures had been falling since 2010, so the FACT that they have begun to increase again is a sign that things are getting worse. All the speculative flipping and Wall Street buy to rent fraud is going to come back and bite the speculators in the ass. Foreclosures will be rising over the next year. Book it dano.
The MSM cackles about the percentage decline in delinquency rates as further proof of recovery. Just look at this chart and tell me we are in a healthy normal housing market. Delinquency rates are still three times the normal rate. This is no recovery. These statistics would be considered catastrophic if observed from the years 1998 through 2005. The housing recovery is nothing but a Federal Reserve/Wall Street mirage created by easy money dished out to Wall Street by Bennie and low downpayment loans through Fannie, Freddie and the FHA.