Inquiring minds want to know how you can have a housing recovery when mortgage originations are at all-time lows. The bright bulbs on CNBC certainly aren’t inquiring. The Ivy League economists at the Fed aren’t inquiring. Wall Street is making bucket loads of dough with their buy to rent scam, so they aren’t inquiring. If it seems too good to be true, it’s too good to be true. There is no housing recovery. There has been a price recovery engineered by the Fed and their Wall Street owners. It benefited them and them only. The stock market isn’t the only rigged market.
Mortgage Originations Plunge To Lowest On Record
Submitted by Tyler Durden on 04/07/2014 10:45 -0400
New mortgage originations fell over 23% month-over-month and a stunning 47% year-to-date according to Black Knight (formerly LPS). As they show in their detailed presentation, with a 65% year-over-year drop, new mortgage originations are at their lowest since their records began and what is perhaps more concerning is prepayment speeds signal further declines are ahead and the ratio of serious deterioration to foreclosure (along with huge numbers of loan mods due to reset) suggest the housing market is anything but recovering fundamentally with the average loan in foreclosure now 2.6 years past due.
But apart from that – prices are up so that must be good right? as affordability for the average joe collapses.
Sssshadow inventory…
Another question is: What if an entire generation is $1 trillion in debt, owing to their “education” that they can’t repay because they live in a service economy that produces nothing but crappy, subsistence-level jobs (if you can find one)?
Once the Russians and Chinese get done buying up property in the US, who’s going to be left? Plenty of sellers, and no buyers, and none coming down the pipe. In order to be able to afford a house, you must have a job that pays well. In order to have a job that pays well, you must live in a productive society. In order to live in a productive society, you have to produce more goods and stuff than you consume. We’ve consumed more than we’ve produced for 40 years, and now all we have left is debt, financialization (debt creation) and a service economy. Therefore, the housing collapse will be almost bottomless.
Stucky’s Housing Recovery Financial Chart
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I think I can turn around my house for a $40k profit if I sell sometime in the next few months. $40k profit on a house that has cost me a hair over $70k.
I’m not sure if I have the stomach to move again though, 4 times in a 2 year span is too much imo.
My sympathies to the younger generation that hopes only to be able to buy a half decent house or condo for an affordable price.
“Foreclosure stuffing” continues. I searched the property records of every place I looked at, and the records for other units in the building, and found multiple foreclosures in every building with more than 20 units, and at least one in smaller associations. Each had been in process since at least 2010, and several, for longer.
If this crap went on the market, prices would become VERY affordable, very quickly.
I love that I’m paying taxes AND a price higher than I should have had to pay for a property, to help defaulting borrowers get free rent on their places for as long as four years, and sometimes even get paid $10,000 or more by the servicing lender to vacate the place, which often costs more than I would ever have been able to spend or think of spending. I love that I’m helping the lenders float their staggering losses.