Posted on 10/18/2013 11:10:00 AM PDT by whitedog57
Poor Spain. The economic news continues to be woeful, even though Spains Prime Minister Mariano Rajoy thinks the worst is over.
But Spains housing and mortgage markets continue to melt down Spain currently has a record high default rate on loans of 12.2%.
spainloandelinq101813
And Spains number of newly mortgaged properties keep declining.
spainmorg8
If we overlay Spains continually declining house prices, we get an interesting picture of continued decline in Spain.
spainhpdelinqloans
Here is a chart for the US housing and mortgage market. The US also has declining residential mortgages outstanding, but at least has turned the corner on serious mortgage delinquencies (gold line) and house prices (green line).
usreshp
Here is a chart of US mortgage loans and the MBAs Purchase Application Index. Mortgage purchase applications fell off the proverbial cliff in Q4 2007 and in 2008-2010.
usloansmbap
We know that investors are driving the housing market in the US, but we have to be concerned if the investor appetite starts to cool. As Zillow noted today, Housing Market Shows Welcome Signs of Cooling in Q3.
Maybe Spain would be better off with retired Yankees reliever Mariano Rivera as Spains Prime Minister.
Mariano-Rivera-Photograph-C12186332
Spain is lovely and most people are very nice.
The question I kept asking after being there 3 weeks was:
“What do this people do for a living that they can party till 4am?”
Now I know!
"Miss Me Yet?"
Yes, and they were all under my hotel window!
When you can walk around and look at houses and say to yourself “I wouldn’t pay that much for that house no matter WHERE it was”, it’s all a bubble created by cheap money.
Shows you just how stupid about economics almost everyone in this country really is.
>> The US also has declining residential mortgages outstanding, but at least has turned the corner
?
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