LOOK OUT BELOW!!!

30 year mortgage rates are at seven year highs. I refinanced at 3.25% years ago. Now rates are at 4.75% and rising.

Remember the housing bubble that burst from 2006 through 2012? Well, home prices nationally are now about 10% higher than the 2005 bubble peak.

Image result for national home prices chart

Meanwhile, real wages have stagnated and rising energy and food prices are sapping discretionary spending.

Rising mortgage rates, highest home prices in history, and a tapped out consumer. I wonder what happens next?

Image result for funny housing market crash

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Trapped in Portlandia
Trapped in Portlandia

There is no problem in the economy that the Federal Reserve can’t solve by printing a crapload of money.

That is until the citizens need wheelbarrows full on dollars to buy groceries. But that will never happen here and even if it does, TPTB don’t give a shit about the dirt people like us.

Neuday
Neuday

That’s the glory of the digital age; a wheelbarrow of Weimar money fits on a debit card.

MadMike
MadMike

Remember the 18% to 21% mortgage interest rates of the Carter era?
The only good news was being on the home lending side or holding CD’s making 10%.
Today municipal bonds and T-bills don’t pay enough to keep up with the real inflation rate.

rhs jr
rhs jr

Those Black Swans circling over head people talk about are really Rich Buzzards.

Crimson Avenger

I think the rich buzzards already struck.

Yes, home prices are 10% higher than at the peak of the housing bubble. But at the same time, the homeownership rate is lower – peaking at 69.2% in 2004, at the peak of the bubble, versus 64.2% now.

That tells me the rich buzzards already bought up a lot of the housing supply…may they get what’s coming to them.

Wip
Wip

Well, I think RE prices are going to continue to explode. Boomers are outbidding each other over smaller homes as they sell their big homes to downsize. Plus only large/expensive homes are being built. Plus somewhat affordable homes are being torn down and replaced with unafordable homes.

I think homes only drop in price if millions of homes are built quickly, foreign buyers pay a very high transaction tax or the unemployment rate skyrockets.

Huck Finn
Huck Finn

It looks like a perfect storm brewing. Fuel prices tracking just like the run up to ’08. Auto bubble looks to have popped. Massive debt, public and private. The too big to fails are even bigger than ever, and since being bailed out have only doubled down at the derivative casino. What could possibly go wrong?

The central banks are the only entity who will benefit from a massive crash. They’ll use it to wipe their own debt slate clean, while at the same time seizing John Q. Public’s collateral, when he can no longer service his debt. Following the money and looking at cui bono, might give one some insight into the likelihood of such an event.

The first couple pages of this PDF give a good summary of who benefits and how. http://www.voltairenet.org/IMG/pdf/CC_20180403_7.pdf

steve
steve

Demographically, McMansions are not the place to be. Boomers are retiring and downsizing, Millennials can’t afford them, taxes rising to bail out / cover city, county, state deficits like pensions. Plus, maintenance, utilities, insurance, etc. If you’re in one it might be time to sell while there is still a market. They’ll soon be a dime a dozen and you’ll be stuck.

Wip
Wip

There simply isn’t enough new housing being built…prices will continue to go up.

Boat Guy
Boat Guy

Remember the woman profiled by Obama during his state of the union . Poor ____ she done lost her home , it just is not fair ! Now the truth : She signed an adjustable mortgage agreement with the assistance of her sister kicking in living with her . One year later she takes a home equity loan and buys a Lexus another year passes and she hits her equity line and takes the family on a luxury cruise then 2008 happened . Sister layed off a balloon payment due and no more equity . We cannot fix stupid irresponsible people from getting into financial trouble . Bad things happen to everybody some we can prepare for others we can’t . Not My problem !
I work a part time job to keep from tapping my IRAs and the owner of the company turns 60 this month he has shuffled income to keep his earnings down which is fine however he mentioned he needs to start saving for retirement now ! WTF baby that ship sailed 40 years ago . He has paid minimal in social security for decades and brags about how in a few good years he made over $100 grand he also blew every dime he leases the business space so the only asset is the franchise and a vehicle . Again not my problem or any other tax paying working persons issue or problem .
The Shit Must Hit The Fan Soon

Michael Keane

Counterfeit REMICs (pools of “loans”), filled with make believe titles to American real estate were used to convey SEC and Tax avoidance Trillions through quasi-foreign “Trusts” to insiders on Wall Street and foreign creditors that propped this illegal system.

The intentionally-mislabeled, “Federal Reserve”, neither federal, nor possessing any reserves, COUNTERFEIT over 1200 Trillions in service to this Fraud and their presence in our Treasury is illegal.

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Obama’s DOJ: Eric Holder, Loretta Lynch and Lanny Breuer, among others, used this deliberate Fraud and labeled it the “Financial Crisis”, after it was initiated by Cowboy George, while they allowed every bank in the country to launder terror and drug money for people that murder American Soldiers.

As possibly a best example, because the Swiss and English banking masters got caught, with Obama’s DOJ, funding the murder of American Soldiers, is Hong Kong Shanghai Banking Corporation-HSBC.

James Comey was placed as an executive with HSBC some six months after it was discovered HSBC funds the murder of American Soldiers.

Obama’s restructuring of GM was used to launder the proceeds to foreclosure frauds, counterfeit titles and bogus REMIC Trusts (pools of “loans”) through the creation of a bogus “hedge fund” called “RESCAP-Residential Capital”… in my personal experience GM claimed to “own” the “debt” on one of my properties 6 years after it had gone bankrupt.

The criminals employed Bank of America as the alias for a French Corporation that my research proves has hidden 1.3 billion dollars in this way. There may be as much as 8.5 billion gone missing…

This is on one “REMIC Trust” there are tens of thousands.

The local courts enjoy the leftovers, while judges purchase defrauded homes directly from the sheriffs. The clerks are also in collusion and often compose the “law firms”; all purchasing and participating in fraud, buying homes for pennies-on-the-dollar.

This Fraud was delivered by both political parties through suppression of bankruptcy protections, suppression of protections under “Glass-Steagall” and most importantly, through deregulation of “derivatives” (FTPA 1993 and CMFA 2000).

The REMICs are used to counterfeit “ownership” of the “debt”. The REMICs are used to swindle pension fund managers. The REMICs are used to launder terror and drug money. The REMICs are used in SEC and Tax evasion. In each role, the REMICs are used as “Collateralized Debt Obligations- CDOs”.

Once a homeowner is targeted in this system, through “dual-tracking”, that CDO is altered to become a CDS “Credit Default Swap” and the fraudulently-foreclosed home is sold to local vultures, judges, sheriffs, law firms, clerks etc. and they enrich themselves by destroying the evidence, while earning millions, for pennies-on-the-dollar.

As an example, in my personal experience, a “debt” of 145 thousand was traded to imposters for one dollar. When we were placed in foreclosure while we were paying.

The courts and attorneys involved are described as “BAR -British Accredited Registry”; antithetical to the Constitution. The illegal presence in our Treasury of English and Swiss Imposters is also antithetical to the Constitution. These criminal Filth expected Clinton to win and business would then defraud even more victims… stay tuned.

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Also, watch, “All the Plenary’s Men”, by John Titus.

~ Michael Keane 5/17/18

Iska Waran
Iska Waran

With brief exceptions, 30 year fixed rate mortgages haven’t been above 5% since 2009.
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Rates staying above 5% could put a damper on sales.

Iska Waran
Iska Waran

The 2 Year Treasury Note is at 2.57%. The 10 Year Treasury Note is 3.11%. The 30 Year Bond yield today is 3.25%. That flat yield curve would seem to imply that traders don’t expect rates to rise much further. https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

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