2012 Lifts Hope for Housing
Marketwatch had this headline up on their site for hours today. This is after existing home sales DECLINED in February. Not only did they decline, they were seasonally adjusted, so we know they were overstated by a mile because of the mild winter weather. The MSM storyline is recovery no matter what the actual data shows. Does the chart below of existing home sales show a recovery? Existing home sales are down 36% from the peak. They are currently running at the same level they were in 1998. This is with mortgage rates at historic lows. This is with Obama forcing Fannie, Freddie and the FHA to guarantee loans to more deadbeats.
Below the graph are some more facts. There are 2 million homes in foreclosure. There are another 3.8 million headed into foreclosure. There are millions of vacant houses. Home prices are still falling. And now mortgage rates are going up. Mortgage applications are plunging.
And the MSM declares HOPE and RECOVERY for the housing market.
I understand Larry Yun thinks it’s the BEST TIME TO BUY!!!!
The following table shows the LPS numbers for February 2012, and also for last month (Jan 2012) and one year ago (Feb 2012).
|LPS: Loans Delinquent and in Foreclosure|
|Less than 90 days||2,059,000||2,226,000||2,495,000|
|More than 90 days||1,722,000||1,772,000||2,165,000|
Note that the number of loans in the foreclosure process has only declined slightly year-over-year. This remains far above the “normal” level of around 0.5%.